Fuel offering and purchase management system

ABSTRACT

The present disclosure is directed towards apparatuses, systems and methods to facilitate the pricing, sales and delivery of a commodity fuel to a Customer. In one embodiment, the disclosure teaches a Fuel Offer Generator that facilitates the purchase and management of fuel offerings. The Fuel Offer Generator allows Customers interested in securing fuel to obtain an offer for fuel at lock-in prices for various tenors. Fuel Customers can buy these fuel offers such that they may later exercise the fuel offers so their fuel costs are locked-in at desired levels (e.g., they may be set to strike prices). The Fuel Offer Generator also can establish a Premium Price that will be part of the fuel offer. The Fuel Offer Generator may generate hedges to counteract fuel related risks stemming from fuel offer purchases. Ultimately, a customer that purchases a fuel offering can exercise their fuel offering order at a specified price and redeem any difference between the market price for their purchased fuel and the price specified in their fuel offering order. The Fuel Offer Generator employs a geographical fuel pump location metric as well as consumer purchasing behavior to establish the pricing of fuel offerings.

RELATED APPLICATIONS

Applicants hereby claim priority under 35 U.S.C. §119 for U.S.provisional patent application No. 60/910,816 filed Apr. 9, 2007 andtitled “FUEL OFFERING AND PURCHASE MANAGEMENT SYSTEM,”. The entirecontents of the aforementioned application(s) are herein expresslyincorporated by reference. This application is also related toco-pending U.S. Non-Provisional patent application Ser. No. 11/733,178filed Apr. 9, 2007 and titled “FUEL OFFERING AND PURCHASE MANAGEMENTSYSTEM,”; co-pending U.S. Non-Provisional patent application Ser. No.11/733,191 filed Apr. 9, 2007 and titled “FUEL OFFERING AND PURCHASEMANAGEMENT SYSTEM,”; co-pending U.S. Non-Provisional patent applicationSer. No. 11/733,192 filed Apr. 9, 2007 and titled “FUEL OFFERING ANDPURCHASE MANAGEMENT SYSTEM,”; co-pending U.S. Non-Provisional patentapplication Ser. No. 11/733,193 filed Apr. 9, 2007 and titled “FUELOFFERING AND PURCHASE MANAGEMENT SYSTEM,”; co-pending U.S.Non-Provisional patent application Ser. No. 11/733,199 filed Apr. 9,2007 and titled “FUEL OFFERING AND PURCHASE MANAGEMENT SYSTEM,”;co-pending U.S. Non-Provisional patent application Ser. No. 11/733,198filed Apr. 9, 2007 and titled “FUEL OFFERING AND PURCHASE MANAGEMENTSYSTEM,”; and co-pending U.S. Non-Provisional patent application Ser.No. 11/733,200 filed Apr. 9, 2007 and titled “FUEL OFFERING AND PURCHASEMANAGEMENT SYSTEM,”.

FIELD

The disclosure relates generally to commodity management systems andmore particularly to apparatuses, systems and methods for facilitatingthe pricing, sales and delivery of a commodity or a commodity derivativeto a customer.

BACKGROUND

The generally increasing and unpredictably fluctuating costs of vehiclefuels, for example automobile fuels, have impacted both privateconsumers and commercial businesses. Not only have fuel prices risensteadily over the long term at rates that significantly exceed thegeneral cost of living, but fuel prices also suffer significantshort-term fluctuations due both to predictable and unpredictable marketforces.

Long-term, steady increases in fuel prices result from a variety ofinfluencing factors, including growing depletion of fossil fuels,increasing costs associated with locating and developing raw fuelmaterials, increasing pricing demands made by oil-producing countries,and others as will be known to the reader.

Short-term price fluctuations in fuel prices can result from bothpredictable and unpredictable events. Summer travel is an example of apredictable market demand event that typically causes the price ofvehicle fuel to fluctuate upwards at a time when the increased cost hasthe most significant effect on a typical purchaser. National andinternational conflicts and political unrests in and amongstoil-producing countries are examples of unpredictable events that oftenproduce unexpected and volatile increases in crude and hence processedfuel products.

These price fluctuations have significantly impacted many purchasers.Automobile drivers find the cost of fuel prohibitive for both businesscommuting and optional travel. Airlines have been forced tosignificantly increase the cost of air transportation to accommodaterising fuel prices. Service providers dependent on fuel prices, forexample taxis, trucking services, package delivery services and othershave all been forced to increase prices to accommodate rising fuelprices.

Many consumers and commercial fuel users have taken significant steps tocontrol or diminish their fuel consumption. More fuel-efficient vehicleshave become available and put into use. Unnecessary travel or fuel usagemay be curtailed. Carpooling and the use of public transportation haveincreased. These “green,” environmentally friendly efforts may result inlower fuel usage and hence lower fuel costs. However, they do notprotect against the ongoing, steady, long-term rise in fuel costs.Neither do they offer significant help against unpredictable, short-termfuel price fluctuations.

In general, it is quite difficult if not impossible for partiesdependent on fuel costs to plan and budget accurately and appropriatelyfor the ever-changing price of fuel, particularly vehicle fuel. Someparties have engaged in pre-purchase programs of automotive fuel, whichis stored at specified filling stations for subsequent pick-up and useby the parties. Such action require purchase and storage of the fuel,and require the parties to pick up the fuel from the storage location.For large, sophisticated commercial practitioners, hedging is anothermethod of controlling the future cost of a commodity.

SUMMARY

The present disclosure is directed towards apparatuses, systems andmethods to facilitate the pricing, sales and delivery of a commodityfuel to a Customer. In one embodiment, the disclosure teaches a FuelOffer Generator that facilitates the purchase and management of fuelofferings. The Fuel Offer Generator allows Customers interested insecuring fuel to obtain an offer for fuel at lock-in prices for varioustenors. Fuel Customers can buy these fuel offers such that they maylater exercise the fuel offers so their fuel costs are locked-in atdesired levels (e.g., they may be set to strike prices). The Fuel OfferGenerator also can establish a Premium Price that will be part of thefuel offer. The Fuel Offer Generator may generate hedges to counteractfuel related risks stemming from fuel offer purchases. Ultimately, acustomer that purchases a fuel offering can exercise their fuel offeringorder at a specified price and redeem any difference between the marketprice for their purchased fuel and the price specified in their fueloffering order. The Fuel Offer Generator employs a geographical fuelpump location metric as well as consumer purchasing behavior toestablish the pricing of fuel offerings.

In one embodiment, a method is disclosed for providing fuel offerings,the method comprising: setting at least one commodity offering terms fora commodity offering; determining at least one commodity offeringpricing value based on the at least one commodity offering terms and atleast one commodity offering pricing model for the commodity offering;providing the commodity offering, including at least one associationbased on the commodity offering pricing values between a strike priceand a premium, for selection by a customer; providing payment for someportion of a commodity purchase for an exercised commodity offering,wherein the strike price of the commodity offering is less than a localretail commodity price; recording customer behavior, including selectionand exercise of commodity offerings, in a customer behavior database;and modifying the at least one commodity offering pricing model based onthe customer behavior database.

BRIEF DESCRIPTION OF THE DRAWINGS

The accompanying appendices and/or drawings illustrate variousnon-limiting, example, inventive aspects in accordance with the presentdisclosure:

FIGS. 1A-B illustrate aspects of an embodiment of the Fuel OfferingGenerator;

FIG. 2 shows a top level information flow of a process for creating andmanaging the execution of fuel offerings to one or more Purchasers,according to one embodiment;

FIGS. 3A-B are of aspects of financial structure model operation inparticular embodiments of Fuel Offering Generator operation;

FIGS. 4A-B illustrate operation of financial structure pricing andprice-pump model operation in respective embodiments of Fuel OfferingGenerator operation;

FIGS. 5A-D illustrate operation aspects for some embodiments of the FuelOffering Generator;

FIG. 6 illustrates a fixed volume aspect of fuel offerings in oneembodiment;

FIG. 7 illustrates an aspect of fuel usage restrictions for fuelofferings in one embodiment;

FIG. 8 illustrates an aspect of cap restrictions for fuel offerings inone embodiment;

FIG. 9 illustrates an aspect of structural constraints of a fueloffering in one embodiment;

FIG. 10 illustrates one embodiment of SPZ map generation;

FIG. 11 illustrates further aspects of SPZ map generation and managementin one embodiment;

FIG. 12 illustrates aspects of SPZ pricing in one embodiment;

FIGS. 13A-B illustrate aspects of withdrawal expiry restrictions onofferings in one embodiment;

FIG. 14 shows an overview of one aspect of the multi-SPZ fuel offeringexercise in one embodiment;

FIG. 15 illustrates aspects of process flow for management of Purchaserprofile incentives and/or penalties in one embodiment;

FIG. 16 illustrates further aspects of process flow for management ofPurchaser profile incentives and/or penalties in one embodiment;

FIG. 17 illustrates further aspects of process flow for management ofPurchaser profile incentives and/or penalties in one embodiment;

FIG. 18 illustrates further aspects of process flow for management ofPurchaser profile incentives and/or penalties in one embodiment;

FIG. 19 illustrates aspects of process flow for management of retailerprice group incentives and/or penalties in one embodiment;

FIG. 20 illustrates further aspects of process flow for management ofretailer price group incentives and/or penalties in one embodiment;

FIG. 21 illustrates further aspects of process flow for management ofretailer price group incentives and/or penalties in one embodiment; and

FIG. 22 is of a block diagram illustrating embodiments of the presentinvention of a Fuel Offering Generator system controller.

The leading number of each reference number within the drawingsindicates the figure in which that reference number is introduced and/ordetailed. As such, a detailed discussion of reference number 101 wouldbe found and/or introduced in FIG. 1. Reference number 201 is introducedin FIG. 2, etc.

DETAILED DESCRIPTION

Fuel Offering Generator

FIG. 1A illustrates a system 100 for generating fuel offerings accordingto an embodiment of the Fuel Offering Generator. System 100 comprises amarket parameter generator 408 coupled for real-time monitoring of datarelated to a fuel market 410. Real-time market data refers to datareflecting current market conditions as trading in the market takesplace. Examples of real-time market data provided to real-time marketparameter generator 108 include wholesale over-the-counter fuel optionsmarket data, wholesale fuel options over-the-counter forward market andfutures market data, and spot prices for retail fuel as well as spotprices for wholesale fuel. In an alternative embodiment, a marketparameter generator may be configured to periodically and/orintermittently query current values for market parameters.

A market history analyzer 115 is coupled to receive and/or recordobservable real-time market data and/or historical records of marketdata related to market 110. The market history analyzer may record andstore observed market data and/or historical market data accumulatedhistorically and received by the market history analyzer. In thatmanner, market history analyzer 115 develops data related to thehistorical performance of the market. In one embodiment of the FuelOffering Generator, market data includes retail gas spot prices andwholesale gas spot prices.

A product matrix generator 125 is coupled to the market parametergenerator 108 and to the market history analyzer 115. Product matrixgenerator 125 is configured to the behavior of market 110. Productmatrix generator 125 operates on the parameters it receives fromreal-time market parameter generator 108 and market history analyzer 115in accordance with a stochastic model of the dynamics of the market 110.In one implementation, the product matrix generator 125 may considersome of the market variables and/or other input parameters in FIG. 4Aand discussed below. Product matrix generator 125 may solve a stochasticdifferential equation to provide a commodity volatility model based onthe input parameters.

In one embodiment, the matrix generator 125 is configured to solvestochastic differential equations for market models using parametersprovided by real-time market parameter generator 108 and market historyanalyzer 115. Among other parameters provided by real-time marketparameter generator 108 and market history analyzer 115, parametersreflecting retail fuel sales activity may be collected and provided toreal-time market parameter generator 108 and market history analyzer 115in embodiments of the Fuel Offering Generator.

For example, in one embodiment of the Fuel Offering Generator, thematrix generator 125 is configured to process spot price spreadinformation provided by real-time market parameter generator 108. Thespot price spread information is related to a difference between aretail fuel spot price and a wholesale fuel spot price. Matrix generator125 processes the spot price spread information in accordance with astochastic model. In embodiments of the Fuel Offering Generator, thematrix generator 125 is further configured to process retail fuelforward curve parameters in accordance with a stochastic model. Theretail forward curve parameters may be provided by the market historyanalyzer 115. In another embodiment of the Fuel Offering Generator, thematrix generator 125 may further solve alternative market models thatare adapted and/or deemed suitable for use in embodiments of the FuelOffering Generator.

In one embodiment of the Fuel Offering Generator, the matrix generator125 receives market parameters from real-time market parameter generator108 and from market history analyzer 115. Product matrix generator 125processes and analyzes the information to provide a solution for theadapted stochastic differential equation. Product matrix generator 125may be coupled to price information generator 130 and configured toprovide the solution thereto. Based upon the solution it receives fromproduct matrix generator 125, price information generator 130 mayprovide data representing a product price at an output in oneimplementation. In an embodiment of the Fuel Offering Generator, theprice information generator 130 may also provide data representing pricesensitivity at an output. In one implementation, the price sensitivitymay indicate price sensitivity not only with respect to wholesale fuelmarkets but also with respect to retail fuel prices, and/or with respectto other input variables received from real-time market parametergenerator 408, market history analyzer 405, and/or product modeler 420.

In one embodiment, the system 100 further comprises a product modeler120. Product modeler 120 is coupled to at least one computer system 102.In some embodiments of the Fuel Offering Generator, the product modeler120 is coupled to two computer systems 102 and 104. In embodiments ofthe Fuel Offering Generator at least one of computer systems 102 and 104comprises a fuel offering Purchaser computer. In some embodiments thefuel offering Purchaser computer may be coupled to product modeler 120via a communications network, such as the Internet. A fuel purchaser mayenter information related to a fuel product, such as a fuel offering,using the fuel offering Purchaser computer. The fuel offering Purchasercomputer transmits the information to product modeler 120. In oneimplementation, the product modeler 120 may use the information from thefuel offering Purchaser to determine features of a financial product tobe modeled by product modeler 120.

In one embodiment, the Fuel Offering Generator 100 comprises at leastone Distributor computer system 104. Distributor computer system 104 iscoupled to product modeler 120 and may enable a Distributor to definecharacteristics of a financial product comprising fuel offerings to beoffered to a consumer. In that embodiment a Distributor inputs data toDistributor computer 104. Distributor computer 104 provides the data toproduct modeler 120. Product modeler 120 models the financial product inaccordance with the characteristics provided by Distributor computersystem 104.

Product modeler 120 is coupled to product matrix generator 125. Basedupon inputs from at least one of a fuel purchaser computer 102 and aDistributor computer 104 product modeler 120 generates data representingfeatures of a financial product. System 100 determines the price of thefinancial product based upon product data provided by product modeler120, real-time market parameters provided by real-time market parametergenerator and on historical market data provided by market historyanalyzer 115.

In one embodiment of the Fuel Offering Generator, the matrix generator125 is coupled to a consumer behavior modeler 170. Consumer behaviormodeler 170 receives data representing Purchaser (e.g., consumer)behavior with respect to fuel offering execution and/or purchase,ownership, exercising, and/or the like. Based upon the behavior dataconsumer behavior modeler 170 provides Purchaser and/or consumerbehavior parameters to matrix generator 125. In that embodiment, matrixgenerator 125 considers the Purchaser and/or consumer behavior incalculating price for a financial product.

FIG. 1B describes one embodiment of a Fuel Offering Generator 101. Inone implementation of the Fuel Offering Generator, a fuel offeringcomprises a product related to future purchases of fuel in a retail fuelmarket. Both the retail and the wholesale fuel markets are observed 103.Observable wholesale fuel market parameters include wholesale fuelover-the-counter (OTC) options information, wholesale gasover-the-counter (OTC) forward market data in a wholesale fuel market.Fuel market data including retail fuel spot price information isobtained 103.

Market parameters related to current market conditions are generatedbased on the observed fuel market condition 111. At least one generatedmarket parameter related to current market conditions iswholesale-retail spot price spread in one implementation. Othergenerated market parameters may include a wholesale implied volatilityand a wholesale forward curve.

In one embodiment of the invention parameters related to current marketconditions are sampled and stored to provide historical data describingpast market behavior 113. One sampled and stored parameter used in oneimplementation to provide historical data is retail fuel market spotprice. Thus historical data related to retail fuel spot price isacquired.

Historical data, such as data related to retail fuel spot price, may beanalyzed 119. The analysis may, in one implementation, consider retailfuel market information. The data is used to estimate parameters ofmodels for fuel market behavior 121. Examples of generated fuel marketbehavior parameters may include retail implied volatility, wholesalemean reversion, retail forward curve and retail mean reversion. Theindicators of fuel market behavior and the parameters related to currentmarket conditions are analyzed 123. In one embodiment of the FuelOffering Generator, the analyzing step is carried out by stochasticmodeling. Price information for the fuel offering is generated 143. Inone embodiment of the Fuel Offering Generator, price sensitivityinformation related to the fuel offering is generated 144.

In further embodiments of the invention Purchaser and/or consumerbehavior may be observed 141. Data related to Purchaser and/or consumerbehavior is obtained based on the observations. In one embodiment of theinvention Purchaser and/or consumer behavior data is analyzed 142 asconsidered in an analyzing step 123 as a factor in generating priceinformation 143.

Fuel Offering Generator Information Flow

With reference now to FIG. 2, there are shown and described a top levelinformation flow of a process for creating and managing the execution offuel offerings to one or more Purchasers, according to one embodiment.

FIG. 2 is seen to include three principal parties including a Provider202 of fuel offerings, a Distributor 204 of fuel offerings and at leastone Purchaser 206 of fuel offerings. It will be understood that incertain embodiments, the Provider 202 and Distributor 204 may beconsidered as a single entity from the perspective of the Purchaser 206.It will also be understood that while FIG. 2 illustrates a singlePurchaser 206, for ease of explanation, the single Purchaser 206 isrepresentative of a marketplace of potential Purchasers 206 of the fueloffering.

At block B1, a request is made by the Distributor 204, directed to theProvider 202, to structure and/or generate one or more fuel offerings.In some embodiments, the request may include some number of productfactors and/or parameters, for example, (i) the type of fuel to offered,(ii) the quantity of fuel to be offered, (iii) usage per periodlimitations, (iv) tenor, (v) geography, and/or (vi) strike price. Ofcourse, in other embodiments, other combinations and/or additionalfactors and/or parameters may alternatively or additionally be provided.

At block C1, the Provider 206 structures a selection of fuel offerings,responsive to the Distributor 204 request. The selection of fuelofferings may, in one embodiment, include associated premiums based onthe parameters provided by the Distributor 204. In certain embodiments,the selection of fuel offerings may constitute a single fuel offering ora range of fuel offerings, as shown in Table 1 below. Depending on theembodiment, a fuel offering may be characterized its type (e.g., fueltype, such as regular unleaded gasoline, premium unleaded gasoline,diesel, bio-diesel, ethanol, hydrogen and/or the like), strike price,tenor or term (e.g., 3 months, 6 months, 1 year, etc.), calculatedpremium and/or the like. Table I, illustrates, by way of non-limitingexample, an exemplary range of fuel offerings which may be constructedby the Provider 206, responsive to a Distributor 204 request.

TABLE 1 Type Quantity Strike Price Tenor Premium Diesel 30k gallons$2.50 3 months $0.40 Diesel 30k gallons $2.75 3 months $0.30 Diesel 30kgallons $3.00 3 months $0.20 Diesel 30k gallons $3.25 3 months $0.10

With continued reference to FIG. 2, at block C2, the range of fuelofferings, such as those shown in Table 1, are presented to theDistributor 204 for his or her approval and/or selection.

At block B2, the Distributor 204, may select one or more fuel offeringsand make said offering(s) available to Purchasers 202. In oneembodiment, it is contemplated that the fuel offering(s) may be madewidely available over to a large population of potential Purchasers overan electronic network, such as the Internet. In the case where theDistributor 204 does not select one or more fuel offerings, the processmay return to block C1 and the fuel offerings may be re-structured in anappropriate manner.

At block B3, the Distributor 204 may pay the Provider 206 an upfrontstrike price plus premium and/or service markup, or otherwise payingonly a premium and/or service markup.

At block C3, the Provider 206 may protect its fuel offering investmentby employing hedging strategies, such as, for example, utilizing forwardcontracts, futures, wholesale fuel options and/or the like inappropriate combination(s). In some embodiments, the Provider 206 mayalternatively elect not to employ any hedging strategies.

At block A1, a Purchaser 202 may access the Distributor 204 (e.g., via aweb-site) to purchase one or more fuel offerings being marketed by theDistributor 204. For example, with reference again to Table I, aPurchaser 202 may elect to purchase the first listed fuel offering (seerow 1 of Table I),

Type Quantity Strike Price Tenor Premium Diesel 30k gallons $2.50 3months $0.40

At block A2, the Purchaser 202, in possession of the fuel offering shownabove, may exercise the fuel offering to purchase fuel (in this case,diesel fuel) up to the stipulated quantity, during the indicated tenor,and at the indicated strike price. Additional details of the transactionmay be dependent upon the model being utilized by the Distributor 204(e.g., based on a national average price or a pump price). For example,in some embodiments, when a Purchaser 202 purchases fuel, theDistributor 204 may pay the difference between the strike price ($2.50),and either the pump price at the point of purchase or a national averageprice on the date of purchase. In one embodiment, the fuel offering ispriced to include the strike price plus the premium, so that uponexercising the fuel offering (i.e., buying gas), the Purchaser 202 paysout no money, and the fuel retailer is paid by the Distributor 204. As afurther example, in accordance with one implementation of the pump pricemodel, if the pump price is $3.00 and the fuel offering strike price is$2.50, the Purchaser 202 effectively pays $0.10 less than the pumpprice, considering a premium payment of $0.40, which is advantageous tothe Purchaser 202.

At block B4, in response to the Purchaser 202 purchasing fuel at blockA2 within the construct of the fuel offering, the Distributor 204 paysthe fuel retailer (e.g., gas station) at the point of purchase the costof the gasoline based on the pump price on the date of purchase. In analternative embodiment wherein the Purchaser has only paid a premium andnot a strike price to the Distributor up front, the Distributor may onlypay based on the difference between the pump price and the fuel offeringstrike price to the gas station.

At block B5, the Distributor collects feedback data on each fueloffering exercise and/or purchase, such as the one described at block A2and said data is provided to the Provider 206 to enable refinement offuture fuel offerings. The collected data may include the prices atwhich Purchasers are exercising fuel offerings (e.g., purchasing fuel)relative to the corresponding fuel offerings strike prices, thequantities involved and/or other indicia.

At block C4, the Provider pays the Distributor the cost of the gasolinefor which the Distributor has paid the gas station. In an alternativeembodiment, the Provider may only pay the difference between the cost ofthe gasoline and the cost calculated based on the fuel offering strikeprice.

Financial Structure Model

FIGS. 3A-B show aspects of financial structure model operation inparticular embodiments of Fuel Offering Generator operation. In FIG. 3A,a combined logic and data flow diagram is shown illustrating oneimplementation of the financial structure model. A pricing module 301receives as inputs fuel market information 303, historical analysis 305,and offering parameters 310. Details surrounding the nature of theseinputs, including examples thereof, and of pricing module operation,will be discussed in greater detail in the context of offering pricingbelow. The pricing module yields as output at least one offering priceand/or price matrix 320, that may be comprised of one or more offeringswith associated strike price, premium, tenor, terms, service markup,restrictions, constraints, discounts, and/or the like. The pricingmodule may also yield as output at least one set of sensitivity datacharacterizing the sensitivity of price matrix elements to inputparameters. For example, the sensitivity data may delineate, among otherthings, the sensitivity of the premium of a given offering or set ofofferings to fuel market factors, such as retail gasoline spot prices.Sensitivity may be represented, in one implementation, by the firstderivative of the output variable (e.g., offering price, premium, strikeprice, etc.) with respect to an input variable (e.g., market factors,historical factors, offering parameters).

The Provider determines at 330 whether the price matrix 320 issatisfactory based on a set of price matrix satisfaction criteria, whichmay include a consideration of the reasonableness of premium value andstrike price combinations. Price matrix satisfaction criteria may alsobe based in part on accumulated Purchaser (e.g., consumer) marketingresearch data 333, such as data describing which offerings, premium andstrike price combinations, etc. are most attractive to Purchasers, whichtypes of offerings are least likely to be exercised, and/or the like. Ifthe price matrix 320 output by the pricing module 301 is notsatisfactory based on the satisfaction criteria, then the offeringparameters 310 may be adjusted in order to improve the alignment of thepricing matrix with the satisfaction criteria in the next iteration. If,on the other hand, the pricing matrix does meet a minimum standard ofsatisfaction, then the corresponding offerings are made available in aPurchaser market, such as a consumer market 335. Purchasers may executepurchases of offerings 340 and, subsequently, exercise the offerings 345to receive pay-outs consistent with offering terms.

In one implementation, the Provider itself may price offerings, makethem available to a Purchaser market, execute Purchaser offeringpurchases, and honor Purchaser offering exercises. In anotherimplementation, the Provider may price offerings and make them availableto an intermediary Distributor entity, who may provide them to aPurchaser market and interface with Purchasers for offer purchases andexercises. Additional details surrounding Provider-Distributor-Purchaserinteractions in the context of offering exercise delays are discussedbelow.

Data related to offering executions and exercises (e.g., offeringpopularity, exercise rates, and/or the like) may be monitored by theProvider and incorporated into a Purchaser marketing research data setthat may be sampled in subsequent selection of offering parameters. Forexample, the Provider may observe that all 3-month tenor, regular octanegasoline offerings having a strike price of $2.90/gallon and up sellconsiderably more poorly than other offerings regardless of the premiumcharged. Subsequent offering generations may, consequently, excludethese offering parameters and/or terms altogether. Offering exerciseinformation may also be fed back into the pricing module throughhistorical analysis variables that may alter the strike price and/orpremium of particular offering rather than changing the presence orabsence of offering parameters altogether. For example, the Provider mayobserve that the profits derived from 12-month tenor, regular octanegasoline offerings having a strike price of $2.00/gallon are greaterthan expected because Purchasers who exercise these particular offeringstend to behave sub-optimally. Consequently, the system may incorporatethat knowledge to charge a lower premium for these particular offeringsthat may attract more Purchasers to these types of offerings andpotentially increase the profits derived from them even more.

Data related to execution 340 and exercise 345 of offerings may also beincorporated, along with sensitivity data 325, into Provider hedgingstrategies and/or practices 350. In an effort to offset, mitigate,and/or eliminate some amount of risk associated with the sale ofofferings, the Provider may elect to select, purchase, and/or manage aportfolio of hedging instruments. A Provider devised hedging portfoliomay be comprised of a variety of different types of holdings in variousimplementations that may include but are not limited to equities, debts,derivatives, synthetics, notes, stocks, preferred shares, bonds,debentures, options, futures, swaps, rights, warrants, commodities,currencies, long and/or short positions, ETFs, and/or other assets orinvestment interests. In one implementation, a Provider devised hedgingportfolio may be comprised of forward contracts and/or futures ofexchange or over-the-counter (OTC) traded wholesale fuel options,gasoline options, and/or the like. Sensitivity data 325 providesinformation describing the degree to which a particular input variable(e.g., a market parameter) affects the strike price and/or premium of anoffering. Counteracting the risk associated with an offering may,therefore, be accomplished by seeking instruments whose sensitivity toinput variables is similar in magnitude but opposite in direction tooffering sensitivities. Observed offering execution and exercisepractices and/or trends of Purchasers may further affect Providerhedging strategies and/or practices. For example, an observation ofsub-optimal exercise of offerings by Purchasers may indicate to aProvider that a smaller purchase of hedging instruments will suffice tooffset the risk associated with the offerings. In the extreme case,wherein the offerings are never exercised under any circumstances, theProvider would have no need for hedging instruments at all. Furtherdetails surrounding hedging strategies and/or practices in the contextof Purchaser aggregation and scale are discussed below.

FIG. 3B shows logic flow in an implementation of the financial structuremodel in one embodiment of Fuel Offering Generator operation. A Providercollects financial structure model inputs 360, such as market factors,average and/or specific fuel prices, price and/or market factorgeographic distributions, historical price data and/or market factors,offering parameters (e.g., strike price, premium, tenor, restrictions,discounts, incentives, and/or the like), Purchaser and/or consumerbehavior considerations, hedging strategy considerations, and/or thelike and stores them in a variables table at 365. Based at least in parton financial structure model inputs, the Provider may determine a pricematrix 370. Model inputs, outputs, and price matrix determination logicwill be discussed in greater detail below. In one implementation, aprice matrix may be comprised of a collection of offerings with varyingterms, strike prices, premiums, incentives, restrictions, and/or thelike. In one implementation, the Provider and/or the Distributor mayfurther append a service markup to the strike price and/or premium toyield an offering price and/or collection of offering prices within aconsumer price matrix.

The Provider may send 375 a price matrix, consumer price matrix, and/orsome portion thereof 376 to Purchasers for consideration and, for anyPurchasers who request to purchase offerings, the Provider maysubsequently receive notices of offering purchases 380 and executeofferings. These executed offerings may be sorted 383 and subsequentlyaggregated 385 into a plurality of similarity classes based on somedesired criteria, such as Purchaser location, selected offeringparameters and/or terms, Purchaser characteristics and/or demographics,Purchaser behavior and/or history, and/or the like. A sensitivity and/orrisk analysis 388 may be performed on the similarity classes in order todetermine sensitivity of offering prices to various input parameters(such as described above) and risk characteristics that may beconsidered in a hedging strategy for subsequent hedging of Providerrisks and/or obligations. In addition, the Provider may optionallyperform correlation analysis 390 on similarity classes, similarity classsensitivities, and/or similarity class risks in order to determinewhich, if any, similarity classes exhibit similar sensitivity and/orrisk characteristics and/or correlations. Similarity classes withcorrelated sensitivity and/or risk behaviors may then be aggregated tosimplify and/or expedite Provider hedging strategies.

The Provider may subsequently implement hedging strategies and/oraccumulate a hedging portfolio 395. In one implementation, Providerhedging strategies may be based in part on execution of Purchaseroffering purchases, Purchaser offering exercises, and/or other Purchaserbehaviors (e.g., Purchaser irrationality, and/or the like) at differentscales of Purchaser granularity. In one implementation, Provider hedgingstrategies may be based in part on individual Purchaser offeringpurchases and/or exercises. For example, a large institutional Purchaser(e.g., a trucking company) may purchase a large enough offering and/orquantity of smaller offerings to motivate a Provider to develop a hedgestrategy based solely on the single Purchaser purchase and/or behavior.In another implementation, Provider hedging strategies may be based inpart on aggregated Purchaser offering purchases and/or exercises. Forexample, in this implementation, a Purchaser's offering purchase of asmall quantity of gasoline may not affect the Provider's hedgingstrategy and/or portfolio. Instead, the Provider may enter a record ofthe offering purchase into a purchase repository for temporary storageand/or aggregation with other fuel offerings. The Provider may thenperiodically analyze purchase repository contents in order to determinewhen there is an aggregation of Purchaser offering purchases that issufficiently large and/or significant to warrant consideration in theProvider hedging strategy and/or modification of the Provider devisedhedging portfolio. Aggregation of Purchaser offering purchases may bemade in a variety of different ways within various implementations. Inone implementation, Purchaser offering purchases may be aggregated basedon time of purchase. In another implementation, Purchaser offeringpurchases may be aggregated based on Purchaser characteristics (e.g.,demographics, location, Purchaser behavior profile, and/or the like). Inanother implementation, Purchaser offering purchases may be aggregatedbased on the nature of Purchasers (e.g., individual Purchasers, smallbusiness Purchasers, large business Purchasers, government/institutionalPurchasers, and/or the like). In another implementation, Purchaseroffering purchases may be aggregated based on the risk characteristicsassociated with Purchasers and/or Purchaser characteristics. In additionto storing execution of Purchaser offering purchases for aggregation, aProvider may additionally or alternatively store exercise of Purchaserofferings for aggregation and subsequent consideration in hedgingstrategies.

The Provider may monitor and/or track Purchaser offerings to determineif offerings are exercised 3100. If a Purchaser has exercised apurchased offering, then the Provider may query the circumstances of thePurchase exercise and pay-out the Provider's obligation under the termsof the offering in light of those circumstances 3105. Circumstances mayinclude location, time, fuel price (e.g., the average price of gasolinein a region wherein the offering was exercised, a regional or nationalaverage fuel price, and/or the like), status of Purchaser owned offeringand/or offering restrictions at the time of purchase (e.g., whether thePurchaser has exceeded a monthly cap, whether the Purchaser is in arestricted region, and/or the like), and/or the like. In oneimplementation, the Provider may determine the Purchaser ownedoffering's strike price and a reference fuel price at the time ofoffering exercise and, if the strike price is less than the referencefuel price, determine the difference between those prices, multiply thatdifference by the volume of gas on which the offering is beingexercised, and implement any additional discounts, penalties, orrestrictions in order to determine the payout amount. In oneimplementation, the reference fuel price is a regional average fuelprice. In another implementation, the reference fuel price is a nationalaverage fuel price. The Provider may also collect and/or analyzePurchaser behavior characteristics 3110. The Provider may recollectand/or update financial structure model inputs at 3115. The Provider mayalso store collected and/or analyzed Purchaser behavior characteristicsin a Purchaser table 3120.

In alternative implementations, a Provider may interface with Purchasersthrough an intermediary Distributor entity. In such an implementation,the Provider at 375 and/or 376 may send a pricing matrix or portionthereof to the Distributor, who may then optionally select elements ofthe price matrix and/or add a service markup to create a consumer pricematrix for subsequent presentation to Purchasers. Purchasers who wish topurchase offerings may request offerings from the Distributor and offerpayment based on the corresponding entries in the consumer price matrix.The Distributor, in turn, may relay purchase requests to the Provider380 and/or purchase offerings from the Provider, and relay thoseofferings back to the Purchasers. When a Purchaser exercises an offering3100, the Distributor may pay-out to the Purchaser to regain ownershipof the offering and immediately submit an exercise notice to theProvider to receive pay-out therefrom. Alternatively, a Distributor maypay-out obligations to Purchasers when offerings are exercised by thosePurchasers, retake ownership of those offerings, and yet retainownership until some later time at which an exercise notice is submittedto the Provider. Such a delay may allow the Distributor to takeadvantage of subsequent market changes (e.g., increases in fuel prices)that are foregone by suboptimal exercise of offerings by Purchasers.Such delay between Purchaser and Distributor offering exercise and/orsuboptimal exercise by either Purchaser or Distributor may be consideredby the Provider in pricing matrix generation and/or hedging strategies.

Financial Structure Pricing

FIGS. 4A-B show operation of financial structure pricing and price-pumpmodel operation in respective embodiments of Fuel Offering Generatoroperation. FIG. 4A shows processing flow for pricing of offerings in oneembodiment of Fuel Offering Generator operation. A collection of moduleinputs 401 may comprise current fuel market information 403, historicalfuel market information and/or analysis 405, and observable 410 andnon-observable 415 parameters derived therefrom. Some examples ofpossible current fuel market information 403 may include currentwholesale gasoline OTC options market data, current wholesale gasolineOTC forward market and futures market data, current retail gasoline spotprices, and/or the like. Some examples of possible historical marketinformation and/or analysis 405 may include historical wholesalegasoline OTC options market data, historical wholesale gasoline OTCforward market and futures market data, historical retail gasoline spotprices, historical wholesale gasoline spot prices, correlations betweenhistorical retail and wholesale gasoline prices, and/or the like. Someexamples of observable parameters 410 that may be derived from currentfuel market information may include wholesale gasoline impliedvolatilities, wholesale gasoline forward curves, spread of retail overwholesale spot prices, and/or the like. Some examples of non-observableparameters 415 that may be derived from historical fuel marketinformation and/or analysis may include retail gasoline impliedvolatilities, wholesale gasoline mean reversion parameters, retailgasoline mean reversion parameters, retail gasoline forward curves,and/or the like.

In one implementation, the pricing module may also admit as inputs acollection of Purchaser historical data. Purchaser historical data maybe comprised of records of Purchaser execution and/or exercise ofofferings. In particular, the system may monitor Purchaser executionand/or exercise of offerings with specific attention to particularPurchaser behavior flags. In one implementation, a Purchaser behaviorflag may comprise consistent solicitation of and/or exercising ofofferings at more expensive than average fuel retailers. In anotherimplementation, a Purchaser behavior flag may comprise consistentsolicitation of and/or exercising of offering at cheaper than averagefuel retailers. In another implementation, a Purchaser behavior flag maycomprise too optimal a pattern of offering exercising. In anotherimplementation, a Purchaser behavior flag may comprise too suboptimal apattern of offering exercising. In another implementation, a Purchaserbehavior flag may comprise strong time dependence of Purchaserexercising of offerings. If the number of observed Purchaser behaviorflags exceeds a threshold minimum value, a Purchaser behavior historyvariable admitted as input to the pricing module may be adjusted so asto cause the pricing module to yield an adjusted pricing matrix intendedto correct and/or direct future Purchaser behavior.

In addition to the aforementioned factors and variables, the pricingmodule may admit a collection of offering parameters that may specifyoffering terms presented to a Purchaser. Some examples of possibleoffering parameters may include strike price, premium, tenor,constraints, restrictions, incentives, discounts, fuel type, geographiclocation, and/or the like. In one implementation, a pricing moduleoperator (e.g., Provider) may set values for some offering parametersand receive others as outputs from the pricing generator. For example, aparticular desired strike price, tenor, set of restrictions, fuel type,and location may be input to the pricing module, and a premium receivedas an output from the module. Alternatively, a particular desiredpremium, tenor, set of restrictions, fuel type, and location may beinput to the pricing module, and a strike price received as an outputfrom the module. The particular mode of operation, including selectionof offering parameter inputs and outputs, may be varied within differentimplementations depending on the particular goals and/or requirements ofparticular applications of the system.

Values for a selected group of module inputs 401 may be fed into thepricing module 301 for processing. Inputs are incorporated into anoffering pricing model 425 such as, in one implementation, a commodityvolatility model incorporated into a stochastic differential equationdescribing commodity value. An example of such a model is provided inU.S. Pat. No. 7,065,475 entitled, “Modeling Option Price Dynamics,”filed on Oct. 31, 2000, which is incorporated in its entirety herein byreference. U.S. Pat. No. 7,980,960 entitled, “System and method forproviding a fuel purchase incentive,” filed on Mar. 28, 2001, and U.S.application Ser. No. 09/853,196 entitled “System and method forproviding a fuel purchase incentive with the sale of a vehicle,” filedMay 11, 2001, are each incorporated in their entirety by reference.Solving a stochastic differential equation to extract output offeringparameters may be accomplished by a variety of techniques in differentembodiments, such as but not limited to grid pricing, Monte Carlosimulation, analytic formulas, and/or the like.

In one implementation, the XML for module inputs may take the followingform:

 <module_inputs>    <observables>       <WG_implied_vol> Jan08-Mar08,30%, Apr08-Dec08, 25%       </WG_implied_vol>      <WG_forward_curve> Jan08-Jun08, $2/gal, Jul08-Dec08, $2.2/gal      </WG_forward_curve>       <Retail_wholesale_spot_spread> $0.8/gal      </Retail_wholesale_spot_spread>    </observables>   <non-observables>       <RG_implied_vol> 20%       </RG_implied_vol>      <WG_mean_reversion> 0.5       </WG_mean_reversion>      <RG_mean_reversion> 0.5       </RG_mean_reversion>      <RG_forward_curve> $2.9/gal       </RG_forward_curve>   </non-observables>    <offering_parameters>       <premium>$0.15/gallon </premium>       <tenor> 3 months </tenor>      <restrictions>           <total_volume> 60 gallons </total_volume>          <cap> 20 gallons/month </cap>       </restrictions>      <fuel_type> “regular” gasoline (87 octane) </fuel type>      <location> New York Metro </location>       <index> New York MetroAverage published by       DOE</index>    </offering_parameters> </module_inputs>

The pricing module 301 subsequently outputs sensitivity data 435 andprice data 440. Price data 440 may, as discussed above, be comprised ofdifferent offering parameters depending on the requirements andconsequent module inputs within a particular implementation. Thus, theprice data 440 output may include, but is not limited to, strike price,premium, tenor, restrictions, usage constraints, incentives, fuel typeconstraints, geographic constraints, and/or the like. Sensitivity data435, as discussed above, describes the extent to which price data 440may vary as module inputs 401 are varied. In one implementation,sensitivity data may be comprised of the first derivative of a pricedata variable with respect to one or more module input variables.

In one implementation, the XML for module outputs may take the followingform:

 <module_outputs>   <sensitivity_data>     <WG_implied_vol_sensitivity> Jan08-Jun08, $1000 per percent volmove, Jul08-Dec08, $500 per percent vol move     </WG_implied_vol_sensitivity >      <WG_forward_curve_sensitivity >Jan08 - Jun08, $500 per $1/gal move, Jul08-Dec08, $750 per $1/gal move     </WG_forward_curve_sensitivity >     <Retail_wholesale_spot_spread_sensitivity > $3000 per $1/gal move     </Retail_wholesale_spot_spread_sensitivity >     <RG_implied_vol_sensitivity >$1500 per percent vol move     </RG_implied_vol_sensitivity >     <WG_mean_reversion_sensitivity > $200 per 0.1 move inmean-reversion      </WG_mean_reversion_sensitivity >     <RG_mean_reversion_sensitivity >$150 per 0.1 move in mean-reversion     </RG_mean_reversion_sensitivity >     <RG_forward_curve_sensitivity > Jan08 - Jun08, $700 per $1/galmove, Jul08-Dec08, $600 per $1/gal move     </RG_forward_curve_sensitivity >   </sensitivity_data>  <price_data>      <strike_price> $2.89/gallon </strike_price>  </price_data>  </module_outputs>

The pricing module output described by the above XML includes a singlestrike price within the price_data/strike_price field. In an alternativeimplementation, a Provider may determine price_data for a variety ofmodule input values in order to yield an array of price_data withdifferent corresponding offering parameters. Such an array of price datawith corresponding offering parameters may be incorporated into apricing matrix. In one implementation, the XML for a three-offeringpricing matrix may take the following form:

<pricing_matrix>   <offering1>      <strike_price> $2.89 </strike_price>     <premium> $0.15/gallon </premium>      <tenor> 3 months </tenor>     <restrictions>         <total_volume> 60 gallons </total_volume>        <cap> 20 gallons/month </cap>      </restrictions>     <fuel_type> “regular” gasoline (87 octane) </fuel type>     <location> New York Metro </location>      <index> New York MetroAverage published by DOE</index>   </offering1>   <offering2>     <strike_price> $3.02 </strike_price>      <premium> $0.10/gallon</premium>      <tenor> 3 months </tenor>      <restrictions>        <total_volume> 60 gallons </total_volume>         <cap> 20gallons/month </cap>      </restrictions>      <fuel_type> “regular”gasoline (87 octane) </fuel type>      <location> New York Metro</location> </offering2>      <index> New York Metro Average publishedby DOE</index>   </offering2>   <offering3>      <strike_price> $2.94</strike_price>      <premium> $0.15/gallon </premium>      <tenor> 6months </tenor>      <restrictions>         <total_volume> 60 gallons</total_volume>         <cap> 20 gallons/month </cap>     </restrictions>      <fuel_type> “regular” gasoline (87 octane)</fuel type>      <location> New York Metro </location>      <index> NewYork Metro Average published by DOE</index>   </offering3></pricing_matrix>

Pump-Price Model and Pricing

FIG. 4B shows logic flow for determination of offering pricing within apump-price model context in one embodiment of Fuel Offering Generatoroperation. Although geography is not necessarily central to the pricestructure itself, it is relevant, and greater detail about the may befound in FIGS. 10-11. In this embodiment, the strike price associatedwith an offering is compared with the price charged by the particularfuel retailer at which an offering is exercised in assessing the extentof pay-out obliged to an exercising Purchaser. For example, in anon-prepay embodiment wherein a Purchaser has only paid a premiumupfront, if a Purchaser exercises an offering based on a strike price of$2.20 for a gallon of gasoline at a retailer that charges $2.40/gallon,the Purchaser may be refunded $0.20/gallon by the Provider, while thesame offering exercised at a retailer charging $2.55 would yield$0.35/gallon if exercised. In an alternative, prepay embodiment whereina Purchaser has paid both strike price and premium up front, theProvider would directly pay the gas station the cost of the fuel basedon either the $2.40 or $2.55 pump prices. Due in part to thepump-specific sensitivity of this model, a number of additionalrestrictions and/or structural considerations, such as management ofgeographic price variations and undesirable Purchaser behavior, may beimplemented to facilitate desired Generator operation and will bedescribed in greater detail below. These factors may, in oneimplementation, be incorporated into determination of up-front pricing(e.g., premiums) for fuel offerings. They may also, or in an alternativeimplementation, be considered as part of fuel offering redemptionstructure as discussed below and in FIGS. 10-12 and 14-21.

Owing to the dependence of pump-price model payout on the price at thepump itself, considerations of variability between pump prices indifferent geographic regions must be incorporated. The Generatordevelops a Single-Price Zone (SPZ) map at 445, wherein an SPZ is definedas a region and/or collection of retailers defined by a single, uniformpricing assignment. For example, a Purchaser may exercise an offeringwith the same strike price at a given premium at all retailers belongingto the same SPZ. SPZ map determination is described in greater detailbelow in FIGS. 10-11. The SPZ map defines SPZ boundaries and may guidethe accumulation of historical pump price distribution data for a givenSPZ 450. Historical Purchaser bias data may also be accumulated for agiven SPZ 455. Purchase bias data may, in one implementation, describethe extent to which Purchasers tend to exercise offerings at retailersthat are biased to one side or the other of the average of retailerswithin the SPZ. For example, a large Purchaser bias may indicate thatPurchasers tend to exercise their offerings disproportionately often atexpensive fuel retailers. The SPZ map and accumulated data may beemployed to determine and/or collect further factors relevant to pricingwithin the pump-price model 460. These factors may include the size ofPurchaser bias with an SPZ, volatility of that bias, convexity of thatbias, and the existence of a no-arbitrage condition. Convexity of biasin this context may, in one implementation, be construed to describe theextent to which there is a difference in the average pay-out amountbetween those offerings based on the difference between strike price andan average retailer pump price and those offerings based on thedifference between a strike price and a pump price at which the offeringis exercised. Volatility of bias reflects the extent to which thedistribution of prices within an SPZ may vary over time and the effectof such variation on deviations of Purchaser behavior from averageexpectations. The no-arbitrage condition in this context may, in oneimplementation, be construed to describe the avoidance of a situationwhere a Purchaser can buy an offering and immediately exercise to makeriskless profit. These and other factors discussed may affect the costof offerings and, consequently, be considered in either the up-frontpricing (e.g., premium) of offerings, or in the devising of incentives,restrictions, discounts, and penalties. A financial structure pricingdetermination is performed at 465, similar to those described above inthe context of the financial structure pricing model above, and theoutput premium and/or strike price is adjusted by an amount determinedby the factors in 460 to yield a pump-price pricing 470.

An example of a premium adjustment made as part of the price-pump modelmay be to determine the average pump price within an SPZ, compute thetotal payout for an offering exercised at all retailers charging higherthan that average, divide by the total number of retailers, and add thisquantity (the convexity of bias, in one implementation) directly to thepremium. Another example of a premium adjustment made as part of theprice-pump model may be to determine the standard deviation of averageretailer pump prices within an SPZ over some period of time and add thatdeviation, or some fraction thereof, to the premium. Further premiumand/or strike price adjustments may be implemented within differentembodiments of the Fuel Offering Generator.

Based on the SPZ map developed in 445, the Generator may determinecurrent and/or historical variability of basis (i.e., difference)between SPZ premiums and/or strike prices for a given collection ofSPZs, such as a collection that is incorporated as part of a Purchaseroffering. Based on that information, the Generator may yield strikeprice and/or premium adjustments and/or a premium adjustment table, asdescribed in greater detail in FIGS. 10-14. The adjustment of premiumprice based on geographic considerations and/or the generation of apremium adjustment table may be relevant, in one implementation, to onlythose fuel offerings that cover fuel purchases made in multiple SPZs.

Customer Interaction Flow

FIG. 5 illustrates an aspect of purchase and fuel offering exercise forone embodiment of the Fuel Offering Generator. Prior to discussingprocess FIG. 5 in detail, it is instructive to first review, in a broadsense, the Purchaser's perspective of Fuel Offering Generator. ThePurchaser may be an entity who desires to purchase fuel offering tomitigate fuel costs over some period of time. In accordance with thisgoal, a number of fuel offerings may be made available for purchase bythe Distributor. A fuel offering may include specific details regardingthe terms and conditions, as shown in the below example.

Type Quantity Strike Price Tenor Premium Diesel 30k gallons $2.50 3months $0.40

The example fuel offering has a tenor of three months, during which thePurchaser may exercise the fuel offering on up to 30 k gallons of dieselfuel at a strike price of $2.50. The premium may, in some embodiments,represents the measure of risk associated with the fuel offering, i.e.,higher premiums may correlate to higher risk fuel offerings. Bypurchasing the fuel offering shown above, the Purchaser mitigates therisk of fuel costing in excess of $2.90 (strike+premium) over the threemonth tenor. That is, by purchasing the fuel offering, the Purchaserpays $0.40 for the ability or right to purchase fuel for $2.50, up tothe stipulated number of gallons (e.g., 30 k). In some embodiments, anoffer price of $2.90 (strike+premium) may represent the Purchaser'seffective purchase price for any purchase made within the 3 month periodfor up to 30 k gallons of fuel if the cost of fuel over that three monthperiod exceeds the offer price. As is apparent to the astute reader,exercising the fuel offering does not clearly provide economic benefitto the Purchaser for prevailing pump prices and/or national averageprices below $2.90, though it may still be beneficial to the Purchaserto exercise the offering between $2.50 and $2.90 because the premium is,at that point, a sunk cost.

As shown in FIG. 5, the Purchaser purchases a fuel offering with aparticular strike price for certain fuel volume (N) 505. At some pointsubsequent to the purchase of the fuel offering, the Purchaser maydecide to purchase X gallons of fuel 510. In so doing, the Purchaser mayelect to exercise the offering on the fuel purchase of X gallons or not515, generally depending upon the pump price of fuel at the time ofpurchase. In the case where the cost of fuel is less than the strikeprice, it does not make economic sense for the Purchaser to exercise theoffering, for reasons described above, and in such a situation, thePurchaser may simply pay the prevailing pump price 525. Alternatively,in the case where the cost of fuel is greater than the strike price,particularly where the cost of fuel is greater than the strikeprice+premium, it may make economic sense to exercise the fuel offering520, though the Purchaser may not necessarily exercise the fuel offering(e.g., if the Purchaser expects the cost of fuel to be even higher thenext day). In some embodiments, the fuel offering may be automaticallyexercised whenever the cost of fuel is greater than the strike, oralternatively, the strike+premium. In another embodiment, the fueloffering is not exercised automatically. If the Purchaser decides toexercise the fuel offering 515, the Purchaser profile (e.g., a data filethat includes information regard the Purchaser's fuel offering(s)) orlike information source regarding the fuel offering may be queried todetermine the unused fuel volume (R) remaining for the fuel offering520. A determination is then made as to whether the remaining volume (R)is equal to or greater than purchase volume (X) 530. If not, then thePurchaser pays the prevailing pump rate 525 for the full purchase. Inanother embodiment the Purchaser may be able to exercise the fueloffering for a partial amount of the full purchase (i.e., for theremaining volume). Otherwise, a determination is made regarding whetherthe prevailing pump price (or other price, such as the national averageprice, as indicated by the implementation) is greater than the strikeprice 540. If so, the Purchaser's account is credited with thedifference (D) between the strike price and the pump price, multipliedby the number of gallons (X) purchased 545. Otherwise, in the case wherethe prevailing pump price is determined to be less than the strike price540, the Purchaser pays the prevailing pump price 550.

FIG. 5B provides an example strike vs. exercise graph for one embodimentof the Fuel Offering Generator. The strike 552 is the strike price(e.g., $1.50) of the fuel offering and the exercise boundary 553represents the price over which exercise of the fuel offering isapproximately economically optimal over the tenor (e.g., 6 months) ofthe offering. The exercise boundary 553 is initially the strike 552 plusan initial boundary and decreases to the strike at the end of the tenorof the offering. In some embodiments, the optimal initial boundary isfound by maximizing the average pay-out across a range of initialboundaries, and the resulting exercise behavior (e.g., economicallyoptimal exercise) used to model Purchaser behavior, including averagepay-out.

FIGS. 5C and 5D provide further illustrate payout aspects for someembodiments. FIG. 5C provides a flow diagram for an embodiment in whichthe Purchaser prepays the strike price (e.g., pays the premium plus thestrike) to the Provider 561 and/or Distributor at the time of purchasingthe fuel offering. When the Purchaser subsequently makes a fuel purchase562, there is a determination of whether the pump price is greater thanthe strike price 563, and if not, the Purchaser is charged the pumpprice 564. If the pump price is greater than the strike price 563 (oranother threshold price as determined by the implementation), in oneembodiment, the Purchaser's fuel offering(s) is(are) exercised andPurchaser's profile is updated 565, and the Provider (and/orDistributor) pays out the pump price 566 (e.g., to the fuel retailer).In another embodiment, if the pump price is greater than the strikeprice 563 (or like threshold price), the Purchaser may be notified andqueried to determine if they wish to exercise their offering(s) 567 withthe Purchaser's response 568 determining the next action (564/565).

FIG. 5D provides a flow diagram for an embodiment in which the Purchaserpays the premium to the Provider 571 and/or Distributor at the time ofpurchasing the fuel offering. When the Purchaser subsequently makes afuel purchase 572, there is a determination of whether the pump price isgreater than the strike price 573, and if not, the Purchaser is chargedthe pump price 574. If the pump price is greater than the strike price573 (or another threshold price as determined by the implementation), inone embodiment, the Purchaser's fuel offering(s) is(are) exercised andPurchaser's profile is updated 575, the Purchaser is charged the strikeprice 576 (e.g., pays the strike price to the fuel retailer) and theProvider (and/or Distributor) pays out the difference between the strikeand the pump price 577 (e.g., to the fuel retailer). In anotherembodiment, if the pump price is greater than the strike price 573 (orlike threshold price), the Purchaser may be notified and queried todetermine if they wish to exercise their offering(s) 578 and thePurchaser's response 579 decides the next action (574/575).

Minimum Usage Requirement

FIG. 6 illustrates an aspect of enforcing minimum usage of fuelofferings in an embodiment of the Fuel Offering Generator. Prior todiscussing FIG. 6 in detail, it is instructive to first briefly reviewthe structure and purpose of imposing minimum fuel usage consumption. Insome embodiments, a fuel offering sold to a Purchaser may include arestriction directed to the manner in which the fuel offering isexercised over the specified tenor. As one example, consider an examplefuel offering with the terms below.

Type Quantity Strike Price Tenor Premium Diesel 30k gallons $2.50 3months $0.40

The exemplary terms of the illustrative fuel offering indicate a tenorof three months, during which the Purchaser may purchase up to 30 kgallons of fuel at a strike price of $2.50. To preclude the consumptionof 30 k gallons all the end, or in disproportionate amounts over thethree month tenor, it is contemplated that some embodiments may impose aminimum monthly usage requirement. In this manner, more predictableexercise of fuel offerings may be achieved. Of course, in otherembodiments, the restriction period may be of a longer or shorterduration (e.g., quarterly minimum usage, weekly minimum usage) inaccordance with the fuel offering tenor, and may be allocated in avariable fashion.

Referring now to FIG. 6, in one embodiment, enforcing a monthly minimumusage begins with a determination regarding whether the end of thecurrent calendar date coincides with the end of the month 605 or someother stipulated period. The Purchaser's profile is queried to determinethe monthly fixed volume (F), which represents the amount that thePurchaser must use per month 610. The Purchaser's profile is queried asecond time to retrieve the total quantity of fuel already consumed bythe Purchaser for the current month, (U) 615. A determination is thenmade regarding whether the total quantity of fuel already consumed inthe current month (U) is greater than the fixed volume (F) 620. If so,the process terminates because it is determined that the Purchaser hasalready purchased in excess of the fixed volume (F) for the currentmonth. Otherwise, a calculation is performed to compute the difference(D) between the fixed volume (F) and the total quantity of fuel alreadyconsumed (U) 625. A further evaluation is performed to determine theamount to be credited to the Purchaser's account for the unused portion.The further calculation determines an amount to be credited (V)corresponding to the value of (D) minus any fees (e.g., due to failureto meet fixed volume requirements), multiplied by the strike price 630.This amount (V) may then be credited back to the Purchaser's account635.

For example, in one embodiment, if a Purchaser purchases a fuel offeringfor a quantity of 500 gallons of gasoline over a tenor of 10 months, thefuel offering may specify a minimum monthly usage of 50 gallons, i.e.,F=50. In this exemplary case, if the Purchaser uses less than 50 gallonsin the first month (e.g., 20 gallons), then the balance, 30 gallons(i.e., the unused portion), is deducted from the Purchaser's totalavailable volume, leaving 450 gallons at the start of the second month.In one embodiment, in the event of a prepay, the strike price for thededucted (i.e., unused) gallons may be returned to the Purchaser, whilein another embodiment the prepayed strike for the deducted gallons arenot returned to the Purchaser. Alternatively, if the Purchaser uses anamount in excess of 50 in a particular month (e.g., 70 gallons), then noaction is required in that the Purchaser has met his or her minimumusage requirement for the month.

Maximal Fuel Usage Restrictions

With reference now to FIG. 7, there is shown a process for enforcingperiodic (e.g., monthly) maximum fuel usage restrictions on fuelofferings. Prior to discussing process in detail, it is instructive tofirst briefly review the structure and purpose of monthly fuel usagerestrictions. In general, a fuel offering sold to a Purchaser mayinclude a restriction directed to the manner in which the fuel isconsumed over the tenor of the offering. As one example, consider thefollowing exemplary fuel offering—

Type Quantity Strike Price Tenor Premium Diesel 30k gallons $2.50 3months $0.40

The exemplary illustrative offering has a tenor of three months, duringwhich the Purchaser may consume up to 30 k gallons of fuel with a strikeprice of $2.50/gallon. To preclude the consumption of 30 k gallons allat once, or in grossly disproportionate amounts over the three monthtenor, it is contemplated to impose a monthly cap (i.e., monthly maximumusage restriction). In this manner, more predictable consumption and/orexercising of offerings may be achieved. Of course, in otherembodiments, the restriction period may be of a longer or shorterduration (e.g., quarterly cap, weekly cap) in accordance with offeringtenor.

Referring again to FIG. 7, the process for enforcing a monthly caprestriction begins with a Purchaser 220 attempting to exercise anoffering on a quantity of fuel (e.g., “N” gallons) 701. In response, thePurchaser's profile is queried to determine a cap (e.g., monthly cap)amount specified as offering parameters within an offering owned by thePurchaser. The Purchaser's profile may also be queried to retrieve atotal quantity of fuel, “M”, previously consumed by the Purchaser forthe current month 703. A determination is then made as to whether thesum of the fuel already consumed “M” by the Purchaser in the currentmonth plus the amount of fuel “N” on which the Purchaser seeks toexercise his or her offering(s) is less than or equal to the monthly caprestriction 705. If so, the Purchaser is permitted to exercise on “N”gallons of fuel 707. Otherwise, a determination is made of the remainingamount of fuel that may be allocated to the Purchaser to stay within thelimitations of the imposed monthly cap 709. The remaining amount whichmay be allocated is an amount “B”, less than the requested amount “N”,which may be determined by subtracting the amount of fuel alreadyconsumed in the month “M” from the monthly cap. The Purchaser may, inone implementation, be issued a notice indicating that the Purchaser'sremaining allowable monthly allocation is “B” gallons 711. The Purchasermay be offered the choice to proceed or not with the exercise of his orher offering on “B” gallons 713. In the case where the Purchaser electsnot to proceed with exercising the offering, the Purchaser may becharged the pump price 715. Otherwise, in the case where the Purchaserelects to proceed, the Purchaser is permitted to exercise his or heroffering on “B” gallons 717 and the Purchaser's profile is updated toreflect the exercise of the offering 719. In an alternative embodiment,the Purchaser may be automatically charged the pump price if theexercise puts the Purchaser over the cap for the period.

In various embodiments, maximal usage restrictions may be implemented ona periodic, quasi-periodic, or non-periodic basis. For example, usagecaps may be implemented and/or varied yearly, seasonally, monthly,weekly, daily, hourly, based on fiscal quarters, based on holiday travelpatterns, based on expected high-traffic time periods, and/or the like.In one embodiment, the usage cap per period may be uniform over thetenor of the offerings owned by a Purchaser, such as being set to thetotal quantity of fuel covered by the offerings divided by the number ofperiods covered by the offering tenor. In another embodiment, the usagecap per period may vary from period to period.

Cap Payout Restriction

With reference now to FIG. 8, there is shown a process for enforcing acap payout restriction on fuel offerings in one embodiment. Prior todiscussing the process in detail, it is instructive to first brieflyreview the structure and purpose of cap payout restrictions. In general,a fuel offering sold to a Purchaser may include a restriction directedto limiting the difference paid between the strike price and somereference price (e.g., pump price, national average price, spot price,and/or the like) in order to minimize Provider and/or Distributorexposure and/or liability. As one example, consider the followingexemplary fuel offering—

Type Quantity Strike Price Tenor Premium Diesel 30k gallons $2.50 3months $0.40

The exemplary illustrative offering has a tenor of three months, duringwhich the Purchaser may consume up to 30 k gallons of fuel with a strikeprice of $2.50/gallon. To preclude the Purchaser from exercising theoffering on purchases where the pump price or national average price isfar in excess of the strike price, it is contemplated to impose a caprestriction on the payout. In other words, a payout cap may beestablished such that when the Purchaser exercises his or her offering,the amount paid cannot exceed the payout cap. In this manner, a higherdegree of certainty is guaranteed regarding payouts. More particularly,the payout is assured not to exceed the payout cap. For example, if aPurchaser seeks to exercise an offering with a strike price of$2.50/gallon on fuel with a reference price of $3.50/gallon, and thepayout cap is set to $0.50/gallon, the Purchaser will may only redeem$0.50/gallon rather than the $1.00/gallon he or she would receive in theabsence of the payout cap. In an alternative embodiment, it iscontemplated that the payout cap may be configured as a price cap,whereby any reference price exceeding the price cap on which a Purchaserseeks to exercise an offering may be replaced by the price cap for thepurpose of determining payout obligations. In a non-prepay example, if aPurchaser seeks to exercise an offering with a strike price of$2.50/gallon on fuel with a reference price of $3.50/gallon, and theprice cap is set to $3.00/gallon, the Purchaser will may only redeem$0.50/gallon rather than the $1.00/gallon he or she would receive in theabsence of the price cap. In yet another embodiment, a payout and/orprice cap may be expressed as some function of the premium and/or strikeprice (e.g., a percentage of the strike price).

Referring now to FIG. 8 in an implementation employing a payout cap, aProvider and/or Distributor may receive a notice of Purchaser exerciseof an offering on some quantity of fuel 805. The Purchaser's profile maybe queried to seek and/or extract a specified payout cap amount, “K”810. A determination is made 815 as to whether such a cap exists in thePurchaser profile and, if not, then a basic payout amount is formulated820 without consideration of a payout cap. Otherwise, the Generatorqueries a reference price corresponding to the offering being exercised.In one implementation, the Generator may determine whether the offeringis subject to a pump-price reference price (e.g., the price of theretailer at which the fuel is purchased) or a financial structurereference price (e.g., a regional average price, a national averageprice, and/or the like) 825. In the former case, the reference price, Z,may be set to the pump price 835, and in the latter case, Z may be setto a national average price. A strike price, S, corresponding to theoffering being exercised may be queried from a Purchaser profile 840,and a determination made of the difference, D, between S and Z 845. Ifthat difference does not exceed the payout cap, K, then a basic payoutis prepared 855 without consideration of a payout cap. Otherwise, thepayout reimbursement to the Purchaser's account may be made based on thevolume of fuel on which the offering is exercised subject to the payoutrestriction K.

In an alternative embodiment wherein a price cap is specified ratherthan a payout cap, the comparison at 850 would be between the price capand the reference price, Z, and the payout amount at 860 would be basedon the difference between the price cap and the strike price.

In various embodiments, price and/or payout caps may be implemented on aperiodic, quasi-periodic, or non-periodic basis. For example, priceand/or payout caps may be implemented and/or varied yearly, seasonally,monthly, weekly, daily, hourly, based on fiscal quarters, based onholiday travel patterns, based on expected high-traffic time periods,and/or the like. In one embodiment, price and/or payout caps per periodmay vary from period to period. In another embodiment, multipledifferent price and/or payout caps may be specified for differentcircumstances, including different locations, regions, SPZs, retailers,Purchasers, Distributors, Providers, times, periods of time, and/or thelike.

Structural Constraint

FIG. 9 illustrates one aspect of structural constraints in an embodimentof Fuel Offering Generator. Specifically, FIG. 9 provides details forimplementing and/or enforcing a structural constraint on the amount (orpercentage) of gas volume that may be reimbursed upon exercising a fueloffering for a particular fuel purchase of a volume (N). In general, afuel offering sold to a Purchaser may include a restriction directed tothe amount or percentage volume of a fuel purchase considered eligiblefor reimbursement upon exercising the fuel offering during its tenor. Asone example, consider the following exemplary fuel offering terms—

Type Quantity Strike Price Tenor Premium Diesel 30k gallons $2.50 3months $0.40

The exemplary illustrative fuel offering has a tenor of three months,during which the Purchaser may exercise the fuel offering on up to 30 kgallons of fuel at a strike price of $2.50. To discourage the Purchaserfrom exercising the fuel offering at an fuel retailer that is relativelymore expensive that other fuel retailers (e.g., a gas station that sellsat $3.20 when most other stations sell at $3.00), some embodiments mayimpose a structural constraint that limits and/or specifies the amount(or percentage) of a fuel purchase on which a Purchaser may exercise thefuel offering.

As shown in FIG. 9, enforcing a structural constraint pertaining to theamount (or percentage) of a fuel purchase that may be reimbursed uponexercising a fuel offering for a specified purchase volume of gas (N)begins with a Purchaser attempting to exercise a fuel offering on apurchase of (N) gallons of fuel 905. In response to the Purchaser'sattempt to exercise the offering on (N) gallons, the Purchaser's profilemay be queried to retrieve associated structural constraint(s), definedherein as (Q) 910. In the embodiment of FIG. 9, this constraint definesa percentage multiplier to be applied to the purchase volume (N) toascertain a reimbursable volume of fuel (R), as will be described. Adetermination is made regarding whether the query of the Purchaser'sprofile yields the structural constraint, that is, does the Purchaser'sprofile include the structural constraint, i.e., variable (Q). If not,the Purchaser may exercise the offering on (N) gallons of fuel at thebasic payout rate 920. Otherwise, a determination is made regarding theamount of fuel (R) that is considered to be reimbursable, in this case,a percentage of the total purchase amount (N) on which the Purchaserdesires to exercise the offering on 925. For some embodiments, thedetermination may be a computation comprising multiplication of the (N)gallons of total fuel purchase by the constraint parameter (Q) to yielda reimbursable volume of fuel (R). Reimbursement is then made to thePurchaser's account based on the volume (R) 930, i.e., the fuel offeringis exercised on (R) and not the total purchase (N). In some embodiments,the Purchaser may be notified of the restricted reimbursement 935.Depending on the embodiment, structural constraints may be implementedon a fixed amount per purchase and/or be distributed over the tenor of afuel offering in a periodic, quasi-periodic, or non-periodic manner.

Geography

In one embodiment, the Fuel Offering Generator may utilize single pricezones (SPZs) in determining a price matrix, strike price and/or premiumof a fuel offering. SPZs may define, for example, a geographic areaand/or other grouping, such as certain station groups, station brandsand/or the like, in which a fuel offering may be exercised (i.e., wherethe fuel offering Purchaser may get his or her selected amount of fuelat the single, preset price).

In one embodiment, as shown in FIG. 10, the Fuel Offering Generator maygenerate an SPZ map 1005. In certain embodiments, a fuel offering may berestricted to only one SPZ. In another embodiment, the exercise of thefuel offering may be restricted to multiple, pre-selected SPZ(s), i.e.,the Purchaser selects one or more SPZs when purchasing the fueloffering, and can only exercise the fuel offering within the identifiedSPZ(s). In an alternative embodiment, the Purchaser may be allowed toexercise the fuel offering outside of the single or multiplepre-selected SPZ(s), but doing so may be associated with an additionalfee/penalty. Based on the SPZ map (and associated price matrix data),the Fuel Offering Generator may create pricing structures and/or strikeadjustments for multi-SPZ Purchasers 1010. Alternatively, oradditionally, the Fuel Offering Generator may determine fees/penaltiesfor exercising fuel offerings outside of the pre-selected SPZ(s) 1011.In one embodiment, the pricing structures, strike adjustments and/orfees/penalties are fixed at purchase (e.g., a Purchaser buys a fueloffering for SPZ1 and locks in an adjustment of $0.25 per gallon forSPZ2 for purchases, if any, in SPZ2). In another embodiment, the pricingstructures, strike adjustments and/or fees/penalties may be floatingand/or variable until the time of exercise. The Fuel Offering Generatormay also manage Purchasers' utilization of SPZs 1015, including managingPurchasers' pricing structures, strike adjustments and/orfees/penalties.

FIG. 11 provides additional detail regarding SPZ mapping and managementfor an embodiment of the Fuel Offering Generator. Upon receiving arequest to determine SPZs 1101, the Fuel Offering Generator maydetermine if the SPZs are to be set to existing geographic boundaries1105. If the SPZs are to be set to existing geographic boundaries 1105,the Fuel Offering Generator determines what scale (e.g., city, county,metropolitan area, state and/or region) for setting the boundaries isappropriate 1110. In one embodiment, the size of the SPZ may beparticularly relevant in pricing associated fuel offerings, for example,the fuel offering for a large SPZ may be relatively expensive due toadverse selection and/or moral hazard issues due to a largerdistribution and/or geographic area. Similarly, in one embodiment, theFuel Offering Generator may determine SPZs to minimize excluding or“shutting out” potential Purchasers, for example, Purchasers in upstateNew York may prefer a fuel offering in which geographic SPZdetermination is based on county, rather than state. The Fuel OfferingGenerator may also account for other issues in determining SPZs, such asthe smaller the SPZ, the more restrictive the fuel offering and/or themore complicated the adjustments needed to use the fuel offeringproducts across SPZs. Based on such information, the Fuel OfferingGenerator may then set the boundaries of the SPZs to the appropriateexisting geographic boundaries 1115. While some embodiments may set SPZsaccording to one scale, other embodiments may combine scales inconstructing SPZs (e.g., one SPZ's boundary may be set to a city, whileanother SPZ's boundary is set to a state). The Fuel Offering Generatormay then determine the price matrix for each SPZ 1145 and store theprice matrices in a SPZ table 1150.

If the SPZs are not to be set to existing geographic boundaries 1105,the Fuel Offering Generator collects 1120 and stores 1125 a geographicdistribution of pricing variables. The Fuel Offering Generator may thenperform a similarity analysis on the geographically distributed pricingvariables 1130 and, as described previously, determine the scale orgranularity with which the SPZ divisions will be set 1135. The FuelOffering Generator may then assign SPZs according to the similarityanalysis and/or determined granularity 1140. In a further embodiment,the assigned geographic boundaries may include, but are not limited to,existing geographic boundaries. The Fuel Offering Generator thendetermines the price matrix for each SPZ 1145 and stores the pricematrices in an SPZ table 1150.

FIG. 12 provides additional detail regarding the SPZ pricing aspect ofan embodiment of Fuel Offering Generator. A Purchaser interacts with theFuel Offering Generator and specifies desired terms for a fuel offering1205. The Purchaser then specifies one or more SPZs in which they wantthe ability to exercise the fuel offering 1210. The Fuel OfferingGenerator then determines is the Purchaser has specified multiple SPZs1215, and if not, serves the fuel offering pricing based for the desiredterms and selected SPZ 1220. In one embodiment, if the Purchaser hasspecified multiple SPZs 1215, the Fuel Offering Generator identifies themost expensive SPZ of the multiple SPZs based on the desired terms 1225and derives an adjustment table (e.g., a strike adjustment table) forthe other specified SPZs 1230. In other embodiments, the Fuel OfferingGenerator may derive an adjustment table for a Purchaser's primary SPZ(e.g., the Purchaser's default location, most traveled location, and/orthe like), with credits for exercising fuel offerings in relativelycheaper SPZs and debits or penalties for exercising in relatively moreexpensive SPZs. The Fuel Offering Generator may then serve the fueloffering pricing based on the most expensive selected SPZ and thederived adjustment table for the Purchaser's desired terms 1235.

Moving momentarily back to the topic of restrictions and constraints, insome embodiments, the Fuel Offering Generator may provide fuel offeringsthat in which there is a withdrawal expiry, i.e., a certain amount orpercentage of the initial amount (e.g., initial volume amount of thefuel offering) that must be exercised before a specified time or else besubject to expiration. For example, the specifications of a certain fueloffering may include a particular strike price, a total volume of 1200gallons, a term of one year, and requirement that the Purchaser mustexercise at least 8.33% (i.e., purchase at least 100 gallons) each monthor else lose the difference. In one embodiment, the withdrawal expiry isset uniformly, for example, if the term of the fuel offering is oneyear, and the length of a sub-period is one month, 8.33% of the initialtotal of the fuel offering must be exercised by the end of each month orbe subject to expiration, while in another embodiment, the withdrawalexpiry could be non-uniform. FIG. 13A illustrates the available exercisevolume per month for a fuel offering with a term of one year, an initialexercisable volume of 1200 gallons, and a withdrawal expiry of 8.33%(100 gallons) per month. As can be seen in the figure, the Purchaser mayexercise any or all of the 1200 gallons in the first month, but only amaximum of 100 gallons by the last month.

In one implementation, the required exercise could be based on acumulative amount, for example, in the situation described above, if aPurchaser exercised 20% in the first month and only 1% in the secondmonth, no part of the fuel offering would be subject to expiration(i.e., 20%+1% is greater than 8.33%+8.33%). Alternatively, in anotherimplementation, the withdrawal expiry could be periodic, so that eithera certain percentage of the initial or remaining amount must beexercised each period or be subject to expiration. In one embodiment,the Purchaser may exercise the entire remaining (i.e., non-expired)amount of the fuel offering, while in another embodiment, the fueloffering may also be subject to usage caps.

FIG. 13B provides additional detail for the withdrawal expiry aspect ofone embodiment of the Fuel Offering Generator. After generation of thefuel offering, the Fuel Offering Generator checks whether it is the endof the specified sub-period 1305, and if it is not, cycles/waits 1335and re-checks 1305. If it is the end of the specified sub-period 1305,the Fuel Offering Generator queries the Purchaser profile for thespecified sub-period expiry volume 1310 and the Purchaser's sub-periodexercise volume 1315. If the Purchaser's sub-period exercise volume isgreater than or equal to the specified sub-period expiry volume 1320,then no part of the Purchaser's fuel offering expires and the FuelOffering Generator waits for the end of the next period 1335. However,if the Purchaser's sub-period exercise volume is less the specifiedsub-period expiry volume 1320, then the Fuel Offering Generatordetermines the difference between the sub-period expiry volume and thesub-period exercise volume 1325 and expires that amount from thePurchaser's fuel offering, updates the Purchaser's profile 1330, andwaits for the end of the next sub-period 1335. In one embodiment, if thePurchaser prepaid the strike price, the strike price for the expiredamount may be returned (but not the premium). Alternatively, someembodiments do not return the prepaid strike price.

Returning to the topic of geography, FIG. 14 provides an overview of oneaspect of the multi-SPZ fuel offering exercise in an embodiment of theFuel Offering Generator. The Fuel Offering Generator receives Purchaserexercise information for a fuel offering 1405, for example, in oneimplementation, via an electronic credit transaction. The Fuel OfferingGenerator may then determine or extract from the exercise informationthe location information (e.g., address of the gas station) where thePurchaser exercised the fuel offering 1410, and matches the location tothe corresponding SPZ 1415. If the SPZ corresponding to the exerciselocation information is also the most expensive SPZ of the Purchaser'sspecified SPZs 1420, then the transaction is completed 1425. If the SPZis not the most expensive SPZ of the Purchaser's specified SPZs 1420,the Fuel Offering Generator extracts the appropriate discount from theAdjustment Table 1430 and credits the Purchaser's account 1435. In afurther embodiment, an adjustment table may also include penalties thatcould be charged to a Purchaser for exercising the fuel offering outsideof a pre-selected SPZ (if allowed by the Fuel Offering Generator).

In one embodiment, the adjustment table is a strike adjustment tableindicating the refund or rebate the Purchaser would receive if theyexercised the fuel offering in one of the selected SPZs which was notthe most expensive SPZ. For example, if a Purchaser selects a fueloffering with two SPZs, Manhattan and Pittsburgh, and the Manhattan SPZis the most expensive, the Purchaser would pay for fuel offering basedon the Manhattan indicated price. However, if the strike adjustmenttable indicated an adjustment of $0.10 for Pittsburgh, and the Purchaserexercised the fuel offering in Pittsburgh, the Purchaser may receive acorresponding credit or rebate for exercising the fuel offering in theless expensive SPZ.

Purchaser Behavior

FIGS. 15 through 18 illustrate the process flow for one aspect ofPurchaser behavior management in an embodiment of the Fuel OfferingGenerator. As shown in FIG. 15, the Fuel Offering Generator may collectrelative pump price usage data for a Purchaser 1505 (for example, thepump price at which the Purchaser exercises one or more fuel offeringsrelative to the pump price at which other Purchasers with likecharacteristics, such as location and/or similar fuel offerings,exercise fuel offerings). Alternatively, or additionally, otherPurchaser behavior data such as the relativetime-from-purchase-to-exercise of fuel offerings, suboptimal exercisetraits (e.g., whether the Purchaser typically exercises the fueloffering suboptimally, and if so, if said exercise is pre-optimal and/orpost-optimal), and/or the like, as well as Purchaser characteristics(e.g., demographic information) may also be collected. Depending on theimplementation, the above data may be collected periodically and/orcontinuously. In some embodiments, the collected data for multiplePurchasers may be amassed and marketing and behavior analyses performedto identify relevant trends and characteristics of Purchasers, includingdata regarding adverse selection (e.g., within a particular SPZ, ifthere is more interest in fuel offerings among Purchaser's who typicallypay higher prices) and/or moral hazard information (e.g., if Purchaser'sstart frequenting more expensive fuel retailers after purchase of fuelofferings).

The Fuel Offering Generator may utilize the collected data tocharacterize a Purchaser, and the characterization may be based on thePurchaser's current information and/or aggregate information. If thecharacterization is based on aggregate information 1510, the FuelOffering Generator determines an aggregate Purchaser behavior profile1515, while if the characterization is based on current Purchaserinformation 1510, the Fuel Offering Generator determines a currentPurchaser behavior profile 1520. Based on the Purchaser behaviorprofile, the Purchaser may be grouped, rated and/or otherwiseidentified, where such identification is used in optimizing subsequentinteractions with the Purchaser. For example, as shown in the figure, inone embodiment, the Purchaser may be identified as preferred,undesirable, or indifferent 1525. In one implementation, the groupingmay reflect the relative value the Purchaser represents (e.g.,profitable, unprofitable, or break-even, respectively). Theidentification may be stored in the Purchasers profile 1530, and in someembodiments, the Purchaser may be notified of their associated statusand/or associated incentives or penalties (as described below in FIGS.16, 17 and 18).

As shown in FIG. 16, in one embodiment, if the Purchaser is preferred,the Fuel Offering Generator may determine if the Purchaser's length ofstay (i.e., the time the Purchaser has had a relationship with the FuelOffering Generator and/or associated entities) is greater than a certainthreshold 1640, the Fuel Offering Generator may associate a length ofstay incentive package (such as discounts, rebates, and/or the like)with the Purchaser's account and/or profile 1645. If the Purchaser'slength of stay is not greater than a certain threshold 1640, the FuelOffering Generator may associate another style of incentive package withthe Purchaser's account and/or profile 1650. Depending on the Purchasercharacteristics, rewards or incentives may be directed to retainPurchasers, encourage increased use and/or acquisition of fuelofferings, and/or otherwise encourage or modify future Purchaserbehavior.

Similarly, FIG. 17 shows Purchaser incentive structures 1780, 1785, 1790related to those shown in FIG. 16 (1640, 1645,1650, respectively), andfurther illustrates an embodiment in which the Fuel Offering Generatordetermines if the Purchaser is in a high variance zone 1770 (e.g.,Purchaser could be exercising fuel offerings at relatively expensive gasstations, but is not doing so as indicated by their preferred status),and if so, associating a supplemental bonus incentive package with thePurchaser's account and/or profile 1775 (e.g., a package thatreinforces/rewards positive Purchaser behavior).

Alternatively, if the Purchaser is undesirable 1525, in one embodiment,as shown in FIG. 18, the Fuel Offering Generator may determine if thePurchaser represents aggregate undesirability 1855 (e.g., the Purchaserhas been undesirable for a significant portion of the relationshipbetween the Purchaser with the Fuel Offering Generator and/or associatedentities), and if so, may terminate the Purchaser's account and/or notprovide the Purchaser with additional fuel offerings. If the FuelOffering Generator determines the Purchaser does not have aggregateundesirability 1855, a penalty package (or an incentive package thatdirects the Purchaser towards preferred behaviors) may be associatedwith the Purchaser's profile and/or account 1865.

FIG. 19 illustrates the process flow for one aspect of Purchaserbehavior management in one embodiment of the Fuel Offering Generator.The Fuel Offering Generator may sample an SPZ pump price distribution1905 in order to extract therefrom one or more statistical quantitiescharacterizing fuel retailers within the SPZ. In one implementation, theGenerator samples pump prices across all retailers within an SPZ, whilein another implementation the Generator samples pump prices from somerepresentative subset of fuel retailers within the SPZ. In still anotherembodiment, the Generator may sample pump prices across a subset ofretailers in the SPZ that excludes one or more non-participating fuelretailers from consideration. The Generator may determine a measure ofpump price spread (σ) 1910, such as a standard deviation, variance,and/or the like. A determination is made 1915 as to whether this pumpprice spread measure exceeds a pre-established threshold, and if not,then the process of FIG. 19 completes with no further action. Otherwise,if the pump price spread measure exceeds the threshold 1915, then fuelretailers in the SPZ may be segmented into a plurality of price groupsbased on the relation of their pump prices to the average pump price1920. For example, fuel retailers may be segmented and/or grouped basedon the number of standard deviations away from the mean pump price thattheir pump prices fall. In one implementation, a fuel retailer's currentpump price is considered, while in another implementation the fuelretailer's pump price averaged over some period of time is considered.In some embodiments, the segmentation information may be used by theFuel Offering Generator as an input in determining a price matrix and/orin constructing an appropriate hedging strategy. Based on thissegmentation, the Generator may incentivize or penalize Purchasersolicitation of particular fuel retailers 1925. In some embodiments,incentives and/or penalties may be provided and/or assessed immediately(i.e., communicated to Purchaser's to directly influence behavior),while in a further embodiment, such incentives and/or penalties may takethe form of modified premiums, price adjustments and/or restrictionsassociated with subsequent fuel offerings.

FIG. 20 illustrates an aspect of fuel retailer incentivizing for someembodiments of the Fuel Offering Generator. The Fuel Offering Generatorsamples SPZ pump price distribution 2005 for one or more statisticalquantities characterizing fuel retailers within the SPZ, in oneembodiment in the process as described in FIG. 19. The Fuel OfferingGenerator may determine a measure of pump price spread (σ) 2010, such asa standard deviation, variance, and/or the like, and a determination ismade 2015 as to whether this pump price spread measure exceeds apre-established threshold, and if not, then the process of FIG. 20completes with no further action. Otherwise, if the pump price spreadmeasure exceeds the threshold 2015, the Fuel Offering Generator segmentsfuel retailers in the SPZ into a plurality of price groups based on therelation of their pump prices to the average pump price 2020, similar toFIG. 19 above. The Fuel Offering Generator then determines the fueloffering utilization within and/or across the price groups 2025 andidentifies if, for a particular price group and/or specific fuelretailer(s) within the price group, there is minimum utilization byPurchasers 2030 (i.e., most Purchasers are not exercising their fueloffering(s)s at the fuel retailers within the price group). In someembodiments, information regarding fuel offering utilization withinand/or across the price groups may be used by the Fuel OfferingGenerator as an input in determining a price matrix and/or inconstructing an appropriate hedging strategy.

If there is not minimum utilization 2030, in particular, if there is notminimum utilization of the more expensive fuel retailers by Purchasers,the Fuel Offering Generator does not continue the process of FIG. 20,and in a further embodiment, the Fuel Offering Generator may reassessassociated pricing, incentives, penalties, premiums, price adjustmentsand/or restrictions, for example, as described in FIG. 19. If there isminimum utilization of a price group and/or particular fuel retailer(s)by Purchasers 2030, as shown in FIG. 21, the Fuel Offering Generator maydetermine the group mobility premium 2135. In one embodiment, the groupmobility premium represents the value that inclusion in another pricegroup (and the associated increase in Purchaser solicitation) representsto the fuel retailer(s), while in another embodiment the group mobilitypremium represents the cost of allowing and/or not disincentivizingPurchaser solicitation of the fuel retailer(s). In yet anotherembodiment, the group mobility premium represents the value thatPurchasers place on having access to the particular price group and/orfuel retailer(s). The group mobility premium may, in some embodiments,by utilized by the Fuel Offering Generator as an input in determining aprice matrix and/or in constructing an appropriate hedging strategy. Inone embodiment, the Fuel Offering Generator and/or associated entitiesmay utilize the group mobility premium in offering or negotiating groupmobility (e.g., the removal of restrictions and/or penalties to allowfuel retailers access to Purchasers) with one or more fuel retailers.This may be particular attractive to fuel retailers with relatively highpump prices (such as premium gas stations or conveniently locatedretailers) in that it allows for segmentation of customers and/or defacto price discrimination. For example, in one embodiment, a gasstation could continue to charge a relatively high pump price to typicalcustomers, while also gaining access to the solicitation of Purchasers.If the fuel retailer accepts the offer and associated group mobilitypremium 2145, the Fuel Offering Generator adjusts the fuel retailer'sposition within the price groups 2150. In one embodiment the groupmobility premium could be paid by the fuel retailer to the Fuel OfferingGenerator (and/or associated entities) as a one time and/or periodicfee. In another embodiment, the group mobility premium could consist ofand/or further include a revenue and/or risk sharing agreement, withpricing adjustment and/or payments from the fuel retailer to the FuelOffering Generator (and/or associated entities) and/or vice versa. Inyet another embodiment, said pricing adjustments and/or payments couldbe made from the fuel retailer and/or Fuel Offering Generator (and/orassociated entities) to the Purchaser, as necessary. In someembodiments, the group mobility premium and associated arrangements maybe used by the Fuel Offering Generator as an input in determining aprice matrix and/or in constructing an appropriate hedging strategy.

Fuel Offering Generator System Controller

FIG. 22 of the present disclosure illustrates inventive aspects of anFuel Offering Generator controller 2201 in a block diagram. In thisembodiment, the Fuel Offering Generator controller 2201 may serve toaggregate, process, store, search, serve, identify, instruct, generate,match, and/or facilitate comparative interactions with information,and/or other related data.

Typically, users, which may be people and/or other systems, engageinformation technology systems (e.g., commonly computers) to facilitateinformation processing. In turn, computers employ processors to processinformation; such processors are often referred to as central processingunits (CPU). A common form of processor is referred to as amicroprocessor. CPUs use communicative signals to enable variousoperations. Such communicative signals may be stored and/or transmittedin batches as program and/or data components facilitate desiredoperations. These stored instruction code signals may engage the CPUcircuit components to perform desired operations. A common type ofprogram is a computer operating system, which, commonly, is executed byCPU on a computer; the operating system enables and facilitates users toaccess and operate computer information technology and resources. Commonresources employed in information technology systems include: input andoutput mechanisms through which data may pass into and out of acomputer; memory storage into which data may be saved; and processors bywhich information may be processed. Often information technology systemsare used to collect data for later retrieval, analysis, andmanipulation, commonly, which is facilitated through a database program.Information technology systems provide interfaces that allow users toaccess and operate various system components.

In one embodiment, the Fuel Offering Generator system controller 2201may be connected to and/or communicate with entities such as, but notlimited to: one or more users from user input devices 2211; peripheraldevices 2212; a cryptographic processor device 2228; and/or acommunications network 2213.

Networks are commonly thought to comprise the interconnection andinteroperation of clients, servers, and intermediary nodes in a graphtopology. It should be noted that the term “server” as used throughoutthis disclosure refers generally to a computer, other device, program,or combination thereof that processes and responds to the requests ofremote users across a communications network. Servers serve theirinformation to requesting “clients.” The term “client” as used hereinrefers generally to a computer, other device, program, or combinationthereof that is capable of processing and making requests and obtainingand processing any responses from servers across a communicationsnetwork. A computer, other device, program, or combination thereof thatfacilitates, processes information and requests, and/or furthers thepassage of information from a source user to a destination user iscommonly referred to as a “node.” Networks are generally thought tofacilitate the transfer of information from source points todestinations. A node specifically tasked with furthering the passage ofinformation from a source to a destination is commonly called a“router.” There are many forms of networks such as Local Area Networks(LANs), Pico networks, Wide Area Networks (WANs), Wireless Networks(WLANs), etc. For example, the Internet is generally accepted as beingan interconnection of a multitude of networks whereby remote clients andservers may access and interoperate with one another.

The Fuel Offering Generator system controller 2201 may be based oncommon computer systems that may comprise, but are not limited to,components such as: a computer systemization 2202 connected to memory2229.

Computer Systemization

A computer systemization 2202 may comprise a clock 2230, centralprocessing unit (CPU) 2203, a read only memory (ROM) 2206, a randomaccess memory (RAM) 2205, and/or an interface bus 2207, and mostfrequently, although not necessarily, are all interconnected and/orcommunicating through a system bus 2204. Optionally, the computersystemization may be connected to an internal power source 2286.Optionally, a cryptographic processor 2226 may be connected to thesystem bus. The system clock typically has a crystal oscillator andprovides a base signal. The clock is typically coupled to the system busand various clock multipliers that will increase or decrease the baseoperating frequency for other components interconnected in the computersystemization. The clock and various components in a computersystemization drive signals embodying information throughout the system.Such transmission and reception of signals embodying informationthroughout a computer systemization may be commonly referred to ascommunications. These communicative signals may further be transmitted,received, and the cause of return and/or reply signal communicationsbeyond the instant computer systemization to: communications networks,input devices, other computer systemizations, peripheral devices, and/orthe like. Of course, any of the above components may be connecteddirectly to one another, connected to the CPU, and/or organized innumerous variations employed as exemplified by various computer systems.

The CPU comprises at least one high-speed data processor adequate toexecute program components for executing user and/or system-generatedrequests. The CPU may be a microprocessor such as AMD's Athlon, Duronand/or Opteron; IBM and/or Motorola's PowerPC; IBM's and Sony's Cellprocessor; Intel's Celeron, Itanium, Pentium, Xeon, and/or XScale;and/or the like processor(s). The CPU interacts with memory throughsignal passing through conductive conduits to execute stored signalprogram code according to conventional data processing techniques. Suchsignal passing facilitates communication within the Fuel OfferingGenerator system controller and beyond through various interfaces.Should processing requirements dictate a greater amount speed, parallel,mainframe and/or super-computer architectures may similarly be employed.Alternatively, should deployment requirements dictate greaterportability, smaller Personal Digital Assistants (PDAs) may be employed.

Power Source

The power source 2286 may be of any standard form for powering smallelectronic circuit board devices such as the following power cells:alkaline, lithium hydride, lithium ion, lithium polymer, nickel cadmium,solar cells, and/or the like. Other types of AC or DC power sources maybe used as well. In the case of solar cells, in one embodiment, the caseprovides an aperture through which the solar cell may capture photonicenergy. The power cell 2286 is connected to at least one of theinterconnected subsequent components of the Fuel Offering Generatorsystem thereby providing an electric current to all subsequentcomponents. In one example, the power source 2286 is connected to thesystem bus component 2204. In an alternative embodiment, an outsidepower source 2286 is provided through a connection across the I/O 2208interface. For example, a USB and/or IEEE 1394 connection carries bothdata and power across the connection and is therefore a suitable sourceof power.

Interface Adapters

Interface bus(ses) 2207 may accept, connect, and/or communicate to anumber of interface adapters, conventionally although not necessarily inthe form of adapter cards, such as but not limited to: input outputinterfaces (I/O) 2208, storage interfaces 2209, network interfaces 2210,and/or the like. Optionally, cryptographic processor interfaces 2227similarly may be connected to the interface bus. The interface busprovides for the communications of interface adapters with one anotheras well as with other components of the computer systemization.Interface adapters are adapted for a compatible interface bus. Interfaceadapters conventionally connect to the interface bus via a slotarchitecture. Conventional slot architectures may be employed, such as,but not limited to: Accelerated Graphics Port (AGP), Card Bus,(Extended) Industry Standard Architecture ((E)ISA), Micro ChannelArchitecture (MCA), NuBus, Peripheral Component Interconnect (Extended)(PCI(X)), PCI Express, Personal Computer Memory Card InternationalAssociation (PCMCIA), and/or the like.

Storage interfaces 2209 may accept, communicate, and/or connect to anumber of storage devices such as, but not limited to: storage devices2214, removable disc devices, and/or the like. Storage interfaces mayemploy connection protocols such as, but not limited to: (Ultra)(Serial) Advanced Technology Attachment (Packet Interface) ((Ultra)(Serial) ATA(PI)), (Enhanced) Integrated Drive Electronics ((E)IDE),Institute of Electrical and Electronics Engineers (IEEE) 1394, fiberchannel, Small Computer Systems Interface (SCSI), Universal Serial Bus(USB), and/or the like.

Network interfaces 2210 may accept, communicate, and/or connect to acommunications network 2213. Through a communications network 113, theFuel Offering Generator system controller is accessible through remoteclients 2233 b (e.g., computers with web browsers) by users 2233 a.Network interfaces may employ connection protocols such as, but notlimited to: direct connect, Ethernet (thick, thin, twisted pair10/100/1000 Base T, and/or the like), Token Ring, wireless connectionsuch as IEEE 802.11a-x, and/or the like. A communications network may beany one and/or the combination of the following: a directinterconnection; the Internet; a Local Area Network (LAN); aMetropolitan Area Network (MAN); an Operating Missions as Nodes on theInternet (OMNI); a secured custom connection; a Wide Area Network (WAN);a wireless network (e.g., employing protocols such as, but not limitedto a Wireless Application Protocol (WAP), I-mode, and/or the like);and/or the like. A network interface may be regarded as a specializedform of an input output interface. Further, multiple network interfaces2210 may be used to engage with various communications network types2213. For example, multiple network interfaces may be employed to allowfor the communication over broadcast, multicast, and/or unicastnetworks.

Input Output interfaces (I/O) 2208 may accept, communicate, and/orconnect to user input devices 2211, peripheral devices 2212,cryptographic processor devices 2228, and/or the like. I/O may employconnection protocols such as, but not limited to: Apple Desktop Bus(ADB); Apple Desktop Connector (ADC); audio: analog, digital, monaural,RCA, stereo, and/or the like; IEEE 1394a-b; infrared; joystick;keyboard; midi; optical; PC AT; PS/2; parallel; radio; serial; USB;video interface: BNC, coaxial, composite, digital, Digital VisualInterface (DVI), RCA, RF antennae, S-Video, VGA, and/or the like;wireless; and/or the like. A common output device is a television set145, which accepts signals from a video interface. Also, a videodisplay, which typically comprises a Cathode Ray Tube (CRT) or LiquidCrystal Display (LCD) based monitor with an interface (e.g., DVIcircuitry and cable) that accepts signals from a video interface, may beused. The video interface composites information generated by a computersystemization and generates video signals based on the compositedinformation in a video memory frame. Typically, the video interfaceprovides the composited video information through a video connectioninterface that accepts a video display interface (e.g., an RCA compositevideo connector accepting an RCA composite video cable; a DVI connectoraccepting a DVI display cable, etc.).

User input devices 2211 may be card readers, dongles, finger printreaders, gloves, graphics tablets, joysticks, keyboards, mouse (mice),remote controls, retina readers, trackballs, trackpads, and/or the like.

Peripheral devices 2212 may be connected and/or communicate to I/Oand/or other facilities of the like such as network interfaces, storageinterfaces, and/or the like. Peripheral devices may be audio devices,cameras, dongles (e.g., for copy protection, ensuring securetransactions with a digital signature, and/or the like), externalprocessors (for added functionality), goggles, microphones, monitors,network interfaces, printers, scanners, storage devices, video devices,video sources, visors, and/or the like.

It should be noted that although user input devices and peripheraldevices may be employed, the Fuel Offering Generator system controllermay be embodied as an embedded, dedicated, and/or monitor-less (i.e.,headless) device, wherein access would be provided over a networkinterface connection.

Cryptographic units such as, but not limited to, microcontrollers,processors 2226, interfaces 2227, and/or devices 2228 may be attached,and/or communicate with the Fuel Offering Generator system controller. AMC68HC16 microcontroller, commonly manufactured by Motorola Inc., may beused for and/or within cryptographic units. Equivalent microcontrollersand/or processors may also be used. The MC68HC16 microcontrollerutilizes a 16-bit multiply-and-accumulate instruction in the 16 MHzconfiguration and requires less than one second to perform a 512-bit RSAprivate key operation. Cryptographic units support the authentication ofcommunications from interacting agents, as well as allowing foranonymous transactions. Cryptographic units may also be configured aspart of CPU. Other commercially available specialized cryptographicprocessors include VLSI Technology's 33 MHz 6868 or SemaphoreCommunications' 40 MHz Roadrunner 184.

Memory

Generally, any mechanization and/or embodiment allowing a processor toaffect the storage and/or retrieval of information is regarded as memory2229. However, memory is a fungible technology and resource, thus, anynumber of memory embodiments may be employed in lieu of or in concertwith one another. It is to be understood that the Fuel OfferingGenerator system controller and/or a computer systemization may employvarious forms of memory 2229. For example, a computer systemization maybe configured wherein the functionality of on-chip CPU memory (e.g.,registers), RAM, ROM, and any other storage devices are provided by apaper punch tape or paper punch card mechanism; of course such anembodiment would result in an extremely slow rate of operation. In atypical configuration, memory 2229 will include ROM 2206, RAM 2205, anda storage device 2214. A storage device 2214 may be any conventionalcomputer system storage. Storage devices may include a drum; a (fixedand/or removable) magnetic disk drive; a magneto-optical drive; anoptical drive (i.e., CD ROM/RAM/Recordable (R), ReWritable (RW), DVDR/RW, etc.); an array of devices (e.g., Redundant Array of IndependentDisks (RAID)); and/or other devices of the like. Thus, a computersystemization generally requires and makes use of memory.

Component Collection

The memory 2229 may contain a collection of program and/or databasecomponents and/or data such as, but not limited to: operating systemcomponent(s) 2215 (operating system); information server component(s)2216 (information server); user interface component(s) 2217 (userinterface); Web browser component(s) 2218 (Web browser); database(s)2219; mail server component(s) 2221; mail client component(s) 2222;cryptographic server component(s) 2220 (cryptographic server); the FuelOffering Generator system component(s) 2235; and/or the like (i.e.,collectively a component collection). These components may be stored andaccessed from the storage devices and/or from storage devices accessiblethrough an interface bus. Although non-conventional program componentssuch as those in the component collection, typically, are stored in alocal storage device 2214, they may also be loaded and/or stored inmemory such as: peripheral devices, RAM, remote storage facilitiesthrough a communications network, ROM, various forms of memory, and/orthe like.

Operating System

The operating system component 2215 is an executable program componentfacilitating the operation of the Fuel Offering Generator systemcontroller. Typically, the operating system facilitates access of I/O,network interfaces, peripheral devices, storage devices, and/or thelike. The operating system may be a highly fault tolerant, scalable, andsecure system such as Apple Macintosh OS X (Server), AT&T Plan 9, Be OS,Linux, Unix, and/or the like operating systems. However, more limitedand/or less secure operating systems also may be employed such as AppleMacintosh OS, Microsoft DOS, Microsoft Windows2000/2003/3.1/95/98/CE/Millenium/NT/Vista/XP (Server), Palm OS, and/orthe like. An operating system may communicate to and/or with othercomponents in a component collection, including itself, and/or the like.Most frequently, the operating system communicates with other programcomponents, user interfaces, and/or the like. For example, the operatingsystem may contain, communicate, generate, obtain, and/or provideprogram component, system, user, and/or data communications, requests,and/or responses. The operating system, once executed by the CPU, mayenable the interaction with communications networks, data, I/O,peripheral devices, program components, memory, user input devices,and/or the like. The operating system may provide communicationsprotocols that allow the Fuel Offering Generator system controller tocommunicate with other entities through a communications network 2213.Various communication protocols may be used by the Fuel OfferingGenerator system controller as a subcarrier transport mechanism forinteraction, such as, but not limited to: multicast, TCP/IP, UDP,unicast, and/or the like.

Information Server

An information server component 2216 is a stored program component thatis executed by a CPU. The information server may be a conventionalInternet information server such as, but not limited to Apache SoftwareFoundation's Apache, Microsoft's Internet Information Server, and/orthe. The information server may allow for the execution of programcomponents through facilities such as Active Server Page (ASP), ActiveX,(ANSI) (Objective-) C (++), C#, Common Gateway Interface (CGI) scripts,Java, JavaScript, Practical Extraction Report Language (PERL), Python,WebObjects, and/or the like. The information server may support securecommunications protocols such as, but not limited to, File TransferProtocol (FTP); HyperText Transfer Protocol (HTTP); Secure HypertextTransfer Protocol (HTTPS), Secure Socket Layer (SSL), and/or the like.The information server provides results in the form of Web pages to Webbrowsers, and allows for the manipulated generation of the Web pagesthrough interaction with other program components. After a Domain NameSystem (DNS) resolution portion of an HTTP request is resolved to aparticular information server, the information server resolves requestsfor information at specified locations on the Fuel Offering Generatorsystem controller based on the remainder of the HTTP request. Forexample, a request such as http://123.124.125.126/myInformation.htmlmight have the IP portion of the request “123.124.125.126” resolved by aDNS server to an information server at that IP address; that informationserver might in turn further parse the http request for the“/myInformation.html” portion of the request and resolve it to alocation in memory containing the information “myInformation.html.”Additionally, other information serving protocols may be employed acrossvarious ports, e.g., FTP communications across port 21, and/or the like.An information server may communicate to and/or with other components ina component collection, including itself, and/or facilities of the like.Most frequently, the information server communicates with the FuelOffering Generator system database 2219, operating systems, otherprogram components, user interfaces, Web browsers, and/or the like.

Access to the Fuel Offering Generator system database may be achievedthrough a number of database bridge mechanisms such as through scriptinglanguages as enumerated below (e.g., CGI) and through inter-applicationcommunication channels as enumerated below (e.g., CORBA, WebObjects,etc.). Any data requests through a Web browser are parsed through thebridge mechanism into appropriate grammars as required by the FuelOffering Generator system. In one embodiment, the information serverwould provide a Web form accessible by a Web browser. Entries made intosupplied fields in the Web form are tagged as having been entered intothe particular fields, and parsed as such. The entered terms are thenpassed along with the field tags, which act to instruct the parser togenerate queries directed to appropriate tables and/or fields. In oneembodiment, the parser may generate queries in standard SQL byinstantiating a search string with the proper join/select commands basedon the tagged text entries, wherein the resulting command is providedover the bridge mechanism to the Fuel Offering Generator system as aquery. Upon generating query results from the query, the results arepassed over the bridge mechanism, and may be parsed for formatting andgeneration of a new results Web page by the bridge mechanism. Such a newresults Web page is then provided to the information server, which maysupply it to the requesting Web browser.

Also, an information server may contain, communicate, generate, obtain,and/or provide program component, system, user, and/or datacommunications, requests, and/or responses.

User Interface

The function of computer interfaces in some respects is similar toautomobile operation interfaces. Automobile operation interface elementssuch as steering wheels, gearshifts, and speedometers facilitate theaccess, operation, and display of automobile resources, functionality,and status. Computer interaction interface elements such as check boxes,cursors, menus, scrollers, and windows (collectively and commonlyreferred to as widgets) similarly facilitate the access, operation, anddisplay of data and computer hardware and operating system resources,functionality, and status. Operation interfaces are commonly called userinterfaces. Graphical user interfaces (GUIs) such as the Apple MacintoshOperating System's Aqua, Microsoft's Windows XP, or Unix's X-Windowsprovide a baseline and means of accessing and displaying informationgraphically to users.

A user interface component 2217 is a stored program component that isexecuted by a CPU. The user interface may be a conventional graphic userinterface as provided by, with, and/or atop operating systems and/oroperating environments such as Apple Macintosh OS, e.g., Aqua, GNUSTEP,Microsoft Windows (NT/XP), Unix X Windows (KDE, Gnome, and/or the like),mythTV, and/or the like. The user interface may allow for the display,execution, interaction, manipulation, and/or operation of programcomponents and/or system facilities through textual and/or graphicalfacilities. The user interface provides a facility through which usersmay affect, interact, and/or operate a computer system. A user interfacemay communicate to and/or with other components in a componentcollection, including itself, and/or facilities of the like. Mostfrequently, the user interface communicates with operating systems,other program components, and/or the like. The user interface maycontain, communicate, generate, obtain, and/or provide programcomponent, system, user, and/or data communications, requests, and/orresponses.

Web Browser

A Web browser component 2218 is a stored program component that isexecuted by a CPU. The Web browser may be a conventional hypertextviewing application such as Microsoft Internet Explorer or NetscapeNavigator. Secure Web browsing may be supplied with 128 bit (or greater)encryption by way of HTTPS, SSL, and/or the like. Some Web browsersallow for the execution of program components through facilities such asJava, JavaScript, ActiveX, and/or the like. Web browsers and likeinformation access tools may be integrated into PDAs, cellulartelephones, and/or other mobile devices. A Web browser may communicateto and/or with other components in a component collection, includingitself, and/or facilities of the like. Most frequently, the Web browsercommunicates with information servers, operating systems, integratedprogram components (e.g., plug-ins), and/or the like; e.g., it maycontain, communicate, generate, obtain, and/or provide programcomponent, system, user, and/or data communications, requests, and/orresponses. Of course, in place of a Web browser and information server,a combined application may be developed to perform similar functions ofboth. The combined application would similarly affect the obtaining andthe provision of information to users, user agents, and/or the like fromthe Fuel Offering Generator system enabled nodes. The combinedapplication may be nugatory on systems employing standard Web browsers.

Mail Server

A mail server component 2221 is a stored program component that isexecuted by a CPU 2203. The mail server may be a conventional Internetmail server such as, but not limited to sendmail, Microsoft Exchange,and/or the. The mail server may allow for the execution of programcomponents through facilities such as ASP, ActiveX, (ANSI) (Objective-)C (++), CGI scripts, Java, JavaScript, PERL, pipes, Python, WebObjects,and/or the like. The mail server may support communications protocolssuch as, but not limited to: Internet message access protocol (IMAP),Microsoft Exchange, post office protocol (POP3), simple mail transferprotocol (SMTP), and/or the like. The mail server can route, forward,and process incoming and outgoing mail messages that have been sent,relayed and/or otherwise traversing through and/or to the Fuel OfferingGenerator system.

Access to the Fuel Offering Generator system mail may be achievedthrough a number of APIs offered by the individual Web server componentsand/or the operating system.

Also, a mail server may contain, communicate, generate, obtain, and/orprovide program component, system, user, and/or data communications,requests, information, and/or responses.

Mail Client

A mail client component 2222 is a stored program component that isexecuted by a CPU 2203. The mail client may be a conventional mailviewing application such as Apple Mail, Microsoft Entourage, MicrosoftOutlook, Microsoft Outlook Express, Mozilla Thunderbird, and/or thelike. Mail clients may support a number of transfer protocols, such as:IMAP, Microsoft Exchange, POP3, SMTP, and/or the like. A mail client maycommunicate to and/or with other components in a component collection,including itself, and/or facilities of the like. Most frequently, themail client communicates with mail servers, operating systems, othermail clients, and/or the like; e.g., it may contain, communicate,generate, obtain, and/or provide program component, system, user, and/ordata communications, requests, information, and/or responses. Generally,the mail client provides a facility to compose and transmit electronicmail messages.

Cryptographic Server

A cryptographic server component 2220 is a stored program component thatis executed by a CPU 2203, cryptographic processor 2226, cryptographicprocessor interface 2227, cryptographic processor device 2228, and/orthe like. Cryptographic processor interfaces will allow for expeditionof encryption and/or decryption requests by the cryptographic component;however, the cryptographic component, alternatively, may run on aconventional CPU. The cryptographic component allows for the encryptionand/or decryption of provided data. The cryptographic component allowsfor both symmetric and asymmetric (e.g., Pretty Good Protection (PGP))encryption and/or decryption. The cryptographic component may employcryptographic techniques such as, but not limited to: digitalcertificates (e.g., X.509 authentication framework), digital signatures,dual signatures, enveloping, password access protection, public keymanagement, and/or the like. The cryptographic component will facilitatenumerous (encryption and/or decryption) security protocols such as, butnot limited to: checksum, Data Encryption Standard (DES), EllipticalCurve Encryption (ECC), International Data Encryption Algorithm (IDEA),Message Digest 5 (MD5, which is a one way hash function), passwords,Rivest Cipher (RC5), Rijndael, RSA (which is an Internet encryption andauthentication system that uses an algorithm developed in 1977 by RonRivest, Adi Shamir, and Leonard Adleman), Secure Hash Algorithm (SHA),Secure Socket Layer (SSL), Secure Hypertext Transfer Protocol (HTTPS),and/or the like. Employing such encryption security protocols, the FuelOffering Generator system may encrypt all incoming and/or outgoingcommunications and may serve as node within a virtual private network(VPN) with a wider communications network. The cryptographic componentfacilitates the process of “security authorization” whereby access to aresource is inhibited by a security protocol wherein the cryptographiccomponent effects authorized access to the secured resource. Inaddition, the cryptographic component may provide unique identifiers ofcontent, e.g., employing and MD5 hash to obtain a unique signature foran digital audio file. A cryptographic component may communicate toand/or with other components in a component collection, includingitself, and/or facilities of the like. The cryptographic componentsupports encryption schemes allowing for the secure transmission ofinformation across a communications network to enable the Fuel OfferingGenerator system component to engage in secure transactions if sodesired. The cryptographic component facilitates the secure accessing ofresources on the Fuel Offering Generator system and facilitates theaccess of secured resources on remote systems; i.e., it may act as aclient and/or server of secured resources. Most frequently, thecryptographic component communicates with information servers, operatingsystems, other program components, and/or the like. The cryptographiccomponent may contain, communicate, generate, obtain, and/or provideprogram component, system, user, and/or data communications, requests,and/or responses.

The Fuel Offering Generator Database

The Fuel Offering Generator database component 2219 may be embodied in adatabase and its stored data. The database is a stored programcomponent, which is executed by the CPU; the stored program componentportion configuring the CPU to process the stored data. The database maybe a conventional, fault tolerant, relational, scalable, secure databasesuch as Oracle or Sybase. Relational databases are an extension of aflat file. Relational databases consist of a series of related tables.The tables are interconnected via a key field. Use of the key fieldallows the combination of the tables by indexing against the key field;i.e., the key fields act as dimensional pivot points for combininginformation from various tables. Relationships generally identify linksmaintained between tables by matching primary keys. Primary keysrepresent fields that uniquely identify the rows of a table in arelational database. More precisely, they uniquely identify rows of atable on the “one” side of a one-to-many relationship.

Alternatively, the Fuel Offering Generator database may be implementedusing various standard data-structures, such as an array, hash, (linked)list, struct, structured text file (e.g., XML), table, and/or the like.Such data-structures may be stored in memory and/or in (structured)files. In another alternative, an object-oriented database may be used,such as Frontier, ObjectStore, Poet, Zope, and/or the like. Objectdatabases can include a number of object collections that are groupedand/or linked together by common attributes; they may be related toother object collections by some common attributes. Object-orienteddatabases perform similarly to relational databases with the exceptionthat objects are not just pieces of data but may have other types offunctionality encapsulated within a given object. If the Fuel OfferingGenerator database is implemented as a data-structure, the use of theFuel Offering Generator database 2219 may be integrated into anothercomponent such as the Fuel Offering Generator component 2235. Also, thedatabase may be implemented as a mix of data structures, objects, andrelational structures. Databases may be consolidated and/or distributedin countless variations through standard data processing techniques.Portions of databases, e.g., tables, may be exported and/or imported andthus decentralized and/or integrated.

In one embodiment, the database component 2219 includes several tables2219 a-i. A Purchaser table 2219 a includes fields such as, but notlimited to: a user name, email address, address, profile, user_id,and/or the like. A Provider table 2219 b includes fields such as, butnot limited to: a Provider name, email address, address, profile,Provider_id, and/or the like. A fuel vendor table 2219 c includes fieldssuch as, but not limited to: a fuel vendor name, address, vendor_id,and/or the like. A Purchaser usage table 2219 d includes fields such as,but not limited to: Purchaser_id, Provider_id, Distributor_id,vendor_id, transaction_id, fuel used, date, fuel purchase price, and/orthe like. A market usage table 2219 e includes fields such as, but notlimited to: date, volume, fuel price, and/or the like. A market pricetable 2219 f includes fields such as, but not limited to: financialinstrument_id, price, and/or the like. A Distributor table 2219 gincludes fields such as, but not limited to: a Distributor name, emailaddress, address, profile, Distributor_id, and/or the like. A singleprice zone table 2219 h includes fields such as, but not limited to:spz_id, region zipcode, region bounding (longitude, latitude), regionradius, and/or the like. A variables table 2219 i includes fields suchas, but not limited to: current fuel market variables, historical fuelmarket variables, price matrices, consumer price matrices, sensitivitydata, Purchaser behavior data, and/or the like.

In one embodiment, the Fuel Offering Generator system database mayinteract with other database systems. For example, employing adistributed database system, queries and data access by Fuel OfferingGenerator system component may treat the combination of the FuelOffering Generator system database, an integrated data security layerdatabase as a single database entity.

In one embodiment, user programs may contain various user interfaceprimitives, which may serve to update the Fuel Offering Generatorsystem. Also, various accounts may require custom database tablesdepending upon the environments and the types of clients the FuelOffering Generator system may need to serve. It should be noted that anyunique fields may be designated as a key field throughout. In analternative embodiment, these tables have been decentralized into theirown databases and their respective database controllers (i.e.,individual database controllers for each of the above tables). Employingstandard data processing techniques, one may further distribute thedatabases over several computer systemizations and/or storage devices.Similarly, configurations of the decentralized database controllers maybe varied by consolidating and/or distributing the various databasecomponents 2219 a-e. The Fuel Offering Generator system may beconfigured to keep track of various settings, inputs, and parameters viadatabase controllers.

The Fuel Offering Generator system database may communicate to and/orwith other components in a component collection, including itself,and/or facilities of the like. Most frequently, the Fuel OfferingGenerator system database communicates with the Fuel Offering Generatorsystem component, other program components, and/or the like. Thedatabase may contain, retain, and provide information regarding othernodes and data.

The Fuel Offering Generator

The Fuel Offering Generator component 2235 is a stored program componentthat is executed by a CPU. The Fuel Offering Generator component affectsaccessing, obtaining and the provision of information, services,transactions, and/or the like across various communications networks. Assuch, the Fuel Offering Generator component enables one to access,calculate, engage, exchange, generate, identify, instruct, match,process, search, serve, store, and/or facilitate transactions to promotefuel offerings to customers. In one embodiment, the Fuel OfferingGenerator component incorporates any and/or all combinations of theaspects of the Fuel Offering Generator that were discussed in theprevious figures.

The Fuel Offering Generator system component enabling access ofinformation between nodes may be developed by employing standarddevelopment tools such as, but not limited to: (ANSI) (Objective-) C(++), Apache components, binary executables, database adapters, Java,JavaScript, mapping tools, procedural and object oriented developmenttools, PERL, Python, shell scripts, SQL commands, web application serverextensions, WebObjects, and/or the like. In one embodiment, the FuelOffering Generator system server employs a cryptographic server toencrypt and decrypt communications. The Fuel Offering Generator systemcomponent may communicate to and/or with other components in a componentcollection, including itself, and/or facilities of the like. Mostfrequently, the Fuel Offering Generator system component communicateswith the Fuel Offering Generator system database, operating systems,other program components, and/or the like. The Fuel Offering Generatorsystem may contain, communicate, generate, obtain, and/or provideprogram component, system, user, and/or data communications, requests,and/or responses.

Distributed Fuel Offering Generator system

The structure and/or operation of any of the Fuel Offering Generatorsystem node controller components may be combined, consolidated, and/ordistributed in any number of ways to facilitate development and/ordeployment. Similarly, the component collection may be combined in anynumber of ways to facilitate deployment and/or development. Toaccomplish this, one may integrate the components into a common codebase or in a facility that can dynamically load the components on demandin an integrated fashion.

The component collection may be consolidated and/or distributed incountless variations through standard data processing and/or developmenttechniques. Multiple instances of any one of the program components inthe program component collection may be instantiated on a single node,and/or across numerous nodes to improve performance throughload-balancing and/or data-processing techniques. Furthermore, singleinstances may also be distributed across multiple controllers and/orstorage devices; e.g., databases. All program component instances andcontrollers working in concert may do so through standard dataprocessing communication techniques.

The configuration of the Fuel Offering Generator system controller willdepend on the context of system deployment. Factors such as, but notlimited to, the budget, capacity, location, and/or use of the underlyinghardware resources may affect deployment requirements and configuration.Regardless of if the configuration results in more consolidated and/orintegrated program components, results in a more distributed series ofprogram components, and/or results in some combination between aconsolidated and distributed configuration, data may be communicated,obtained, and/or provided. Instances of components consolidated into acommon code base from the program component collection may communicate,obtain, and/or provide data. This may be accomplished throughintra-application data processing communication techniques such as, butnot limited to: data referencing (e.g., pointers), internal messaging,object instance variable communication, shared memory space, variablepassing, and/or the like.

If component collection components are discrete, separate, and/orexternal to one another, then communicating, obtaining, and/or providingdata with and/or to other component components may be accomplishedthrough inter-application data processing communication techniques suchas, but not limited to: Application Program Interfaces (API) informationpassage; (distributed) Component Object Model ((D)COM), (Distributed)Object Linking and Embedding ((D)OLE), and/or the like), Common ObjectRequest Broker Architecture (CORBA), process pipes, shared files, and/orthe like. Messages sent between discrete component components forinter-application communication or within memory spaces of a singularcomponent for intra-application communication may be facilitated throughthe creation and parsing of a grammar. A grammar may be developed byusing standard development tools such as lex, yacc, XML, and/or thelike, which allow for grammar generation and parsing functionality,which in turn may form the basis of communication messages within andbetween components. Again, the configuration will depend upon thecontext of system deployment.

The entirety of this disclosure (including the Cover Page, Title,Headings, Field, Background, Summary, Brief Description of the Drawings,Detailed Description, Claims, Abstract, Figures, and otherwise) shows byway of illustration various embodiments in which the claimed inventionsmay be practiced. The advantages and features of the disclosure are of arepresentative sample of embodiments only, and are not exhaustive and/orexclusive. They are presented only to assist in understanding and teachthe claimed principles. It should be understood that they are notrepresentative of all claimed inventions. As such, certain aspects ofthe disclosure have not been discussed herein. That alternateembodiments may not have been presented for a specific portion of theinvention or that further undescribed alternate embodiments may beavailable for a portion is not to be considered a disclaimer of thosealternate embodiments. It will be appreciated that many of thoseundescribed embodiments incorporate the same principles of the inventionand others are equivalent. Thus, it is to be understood that otherembodiments may be utilized and functional, logical, organizational,structural and/or topological modifications may be made withoutdeparting from the scope and/or spirit of the disclosure. As such, allexamples and/or embodiments are deemed to be non-limiting throughoutthis disclosure. Also, no inference should be drawn regarding thoseembodiments discussed herein relative to those not discussed hereinother than it is as such for purposes of reducing space and repetition.For instance, it is to be understood that the logical and/or topologicalstructure of any combination of any program components (a componentcollection), other components and/or any present feature sets asdescribed in the figures and/or throughout are not limited to a fixedoperating order and/or arrangement, but rather, any disclosed order isexemplary and all equivalents, regardless of order, are contemplated bythe disclosure. Furthermore, it is to be understood that such featuresare not limited to serial execution, but rather, any number of threads,processes, services, servers, and/or the like that may executeasynchronously, concurrently, in parallel, simultaneously,synchronously, and/or the like are contemplated by the disclosure. Assuch, some of these features may be mutually contradictory, in that theycannot be simultaneously present in a single embodiment. Similarly, somefeatures are applicable to one aspect of the invention, and inapplicableto others. In addition, the disclosure includes other inventions notpresently claimed. Applicant reserves all rights in those presentlyunclaimed inventions including the right to claim such inventions, fileadditional applications, continuations, continuations in part,divisions, and/or the like thereof. As such, it should be understoodthat advantages, embodiments, examples, functional, features, logical,organizational, structural, topological, and/or other aspects of thedisclosure are not to be considered limitations on the disclosure asdefined by the claims or limitations on equivalents to the claims.

What is claimed is:
 1. A processor-implemented method to providecommodity offerings, comprising: setting at least one commodity offeringterms for a commodity offering; determining by a processor at least onecommodity offering pricing value based on the at least one commodityoffering terms and at least one commodity offering pricing model for thecommodity offering; providing the commodity offering, including at leastone association based on the commodity offering pricing values between astrike price and a premium, for selection by a customer; receiving acustomer selection of the at least one association between the strikeprice and the premium; and providing payment for some portion of acommodity purchase for an exercised commodity offering, based on thecustomer selection, wherein the strike price of the commodity offeringis less than a local retail commodity price; recording customerbehavior, including selection and exercise of commodity offerings, in acustomer behavior database; and modifying by the processor the at leastone commodity offering pricing model based on the customer behaviordatabase.
 2. The method of claim 1, wherein the commodity is a fuel. 3.The method of claim 2, wherein the fuel is a vehicle fuel.
 4. The methodof claim 2, wherein the fuel is a heating fuel.
 5. The method of claim2, wherein the local retail commodity price is a fuel pump price.
 6. Themethod of claim 5, wherein fuel pump price is paid by the customer. 7.The method of claim 1, wherein the local retail commodity price is acommodity price charged by a retail commodity dealer at which thecommodity offering is exercised.
 8. The method of claim 1, wherein thestrike price is pre-selected and the premium is determined based atleast in part on the strike price.
 9. The method of claim 1, wherein thepremium is pre-selected and the strike price is determined based atleast in part on the premium.
 10. The method of claim 1, wherein thecommodity offering pricing model includes at least one commodity marketvariable.
 11. The method of claim 10, wherein the at least one commoditymarket variable comprises at least one local retail commodity price. 12.The method of claim 10, wherein the at least one commodity marketvariable includes any of: wholesale gasoline over-the-counter optionsmarket data, wholesale gasoline over-the-counter forward market andfutures market data, retail gasoline spot prices, wholesale gasolineimplied volatilities, wholesale gasoline forward curve, spread of retailspot price over wholesale spot price.
 13. The method of claim 1, furthercomprising: determining whether the at least one association based onthe commodity offering pricing values between a strike price and apremium is satisfactory.
 14. The method of claim 13, wherein thedetermining whether the at least one association based on the commodityoffering pricing values between a strike price and a premium issatisfactory, further, comprises querying a market information databasefor information to be used as a factor in determining whether saidassociation is satisfactory.
 15. The method of claim 13, wherein thedetermining whether the at least one association based on the commodityoffering pricing values between a strike price and a premium issatisfactory, further, comprises querying a customer marketing databasefor information to be used as a factor in determining whether saidassociation is satisfactory.
 16. The method of claim 15, wherein thecommodity offering terms are adjusted based on the determination ofwhether the association is satisfactory.
 17. The method of claim 15,wherein the commodity pricing model is adjusted based on thedetermination of whether the association is satisfactory.
 18. The methodof claim 13, wherein the determining whether the at least oneassociation based on the commodity offering pricing values between astrike price and a premium is satisfactory, further, comprises queryinga historical usage database for information to be used as a factor indetermining whether said association is satisfactory.
 19. The method ofclaim 18, wherein the commodity offering terms are adjusted based on thedetermination of whether the association is satisfactory.
 20. The methodof claim 18, wherein the commodity pricing model is adjusted based onthe determination of whether the association is satisfactory.
 21. Themethod of claim 1, wherein the commodity offering term parameters mayinclude any of: strike price, premium, tenor, incentives, commoditytype.
 22. The method of claim 1, wherein the commodity offering pricingmodel comprises a commodity volatility model described by a stochasticdifferential equation.
 23. The method of claim 22, wherein the commodityvolatility model described by a stochastic differential equation ismanifested in a Monte Carlo simulation.
 24. The method of claim 22,wherein the commodity volatility model described by a stochasticdifferential equation is manifested in a grid-pricing scheme.
 25. Themethod of claim 22, wherein the commodity volatility model described bya stochastic differential equation is manifested in at least oneanalytic formula.
 26. The method of claim 1, wherein the setting atleast one commodity offering terms is based on a customer specification.27. The method of claim 26, wherein the customer specification includesa strike price.
 28. The method of claim 26, wherein the customerspecification includes a premium.
 29. The method of claim 26, whereinthe customer specification includes a tenor.
 30. The method of claim 26,wherein the customer specification includes a commodity type.
 31. Themethod of claim 26, wherein the customer specification includes at leastone geographic zone.
 32. The method of claim 31, wherein the customerspecification includes at least one primary geographic zone.
 33. Themethod of claim 32, wherein the customer specification includes at leastone peripheral geographic zone.
 34. The method of claim 1, wherein theselection by a customer comprises customer payment of a premium and astrike price for a specified commodity quantity.
 35. The method of claim34, wherein payment for some portion of a commodity purchase for anexercised commodity offering comprises a payment to a commodity retailerfor the commodity purchase on which the commodity offering has beenexercised.
 36. The method of claim 1, wherein the selection by acustomer comprises customer payment of a premium but not a strike pricefor a specified commodity quantity.
 37. The method of claim 36, whereinpayment for some portion of a commodity purchase for an exercisedcommodity offering comprises a payment to a customer based on acommodity purchase size and a difference between the strike price andthe local retail commodity price.
 38. The method of claim 1, furthercomprising: storing commodity offering exercise information in ahistorical usage database.
 39. The method of claim 38, wherein thecommodity offering exercise information includes a location where thecommodity offering was exercised.
 40. The method of claim 38, whereinthe commodity offering exercise information includes a commodityquantity on which the commodity offering was exercised.
 41. The methodof claim 1, wherein the payment for some portion of a commodity purchasefor an exercised commodity offering is limited to a total commodityquantity specified by the commodity offering terms.
 42. The method ofclaim 1, further comprising: recording customer selection of commodityofferings in a customer selection database; and executing a hedge basedon entries in the customer selection database.
 43. The method of claim42, further comprising: aggregating entries in the customer selectiondatabase into at least one similarity class prior to executing a hedge;and executing a hedge based on similarity classes.
 44. The method ofclaim 43, wherein aggregating entries is based on commodity offeringterms.
 45. The method of claim 43, wherein aggregating entries is basedon commodity offering pricing.
 46. The method of claim 43, whereinaggregating entries is based on customer characteristics.
 47. The methodof claim 43, wherein aggregating entries is based on riskconsiderations.
 48. The method of claim 42, wherein the hedge includesthe purchase of at least one forward contract.
 49. The method of claim1, wherein the commodity pricing model is configured to output at leastone price sensitivity value.
 50. The method of claim 49, furthercomprising: executing a hedge based at least in part on the at least oneprice sensitivity value.
 51. The method of claim 1, wherein the customerbehavior includes a local retail commodity price at a time and retailestablishment at which a customer has exercised a commodity offering.52. The method of claim 51, wherein the customer behavior furtherincludes a regional average commodity price at a time and an area withinwhich a customer has exercised a commodity offering.
 53. The method ofclaim 52, further comprising: ascribing a negative status point to acustomer profile in the customer behavior database if the local retailcommodity price at a time and retail establishment exceeds the regionalaverage commodity price at a time and vicinity by an amount greater thana pre-set threshold.
 54. The method of claim 53, further comprising:assigning a disincentive package to the customer profile based on anaccumulation of negative status points.
 55. The method of claim 52,further comprising: ascribing a positive status point to a customerprofile in the customer behavior database if the local retail commodityprice at a time and retail establishment is less than the regionalaverage commodity price at a time and vicinity by an amount greater thana pre-set threshold.
 56. The method of claim 55, further comprising:assigning an incentive package to the customer profile based on anaccumulation of negative status points.
 57. The method of claim 1,wherein the modifying the at least one commodity offering pricing modelbased on the customer behavior database comprises: ascribing at leastone penalty for solicitation of a retailer satisfying a set of penaltycriteria, comprising: the retailer's local retail commodity priceconsistently exceeds a regional average retail commodity price for aregion containing the retailer; and a number of commodity offeringsexercised at the retailer exceeds a pre-set threshold.
 58. The method ofclaim 1, wherein the modifying the at least one commodity offeringpricing model based on the customer behavior database comprises:ascribing at least one incentive for solicitation of a retailersatisfying a set of incentive criteria, comprising: the retailer's localretail commodity price is consistently less than a regional averageretail commodity price for a region containing the retailer; and anumber of commodity offerings exercised at the retailer is less than apre-set threshold.
 59. The method of claim 1, wherein providing thecommodity offering includes a plurality of associations between strikeprices and premiums, and further comprising: providing the plurality ofassociations between strike prices and premiums for selectable displayto the customer, wherein the customer selection is received from theselectable display.
 60. A processor-implemented system to providecommodity offerings, comprising: a memory; a processor disposed incommunication with the memory, and configured to issue a plurality ofprocessing instructions stored in the memory, wherein the processorissues instructions to: set at least one commodity offering terms for acommodity offering; determine at least one commodity offering pricingvalue based on the at least one commodity offering terms and at leastone commodity offering pricing model for the commodity offering; providethe commodity offering, including at least one association based on thecommodity offering pricing values between a strike price and a premium,for selection by a customer; receive a customer selection of the atleast one association between the strike price and the premium; providepayment for some portion of a commodity purchase for an exercisedcommodity offering, based on the customer selection, wherein the strikeprice of the commodity offering is less than a local retail commodityprice; record customer behavior, including selection and exercise ofcommodity offerings, in a customer behavior database; and modify the atleast one commodity offering pricing model based on the customerbehavior database.
 61. A processor-readable medium havingprocessor-executable program instructions residing thereon, wherein theprocessor-executable program instructions are issuable by the processorto: set at least one commodity offering terms for a commodity offering;determine at least one commodity offering pricing value based on the atleast one commodity offering terms and at least one commodity offeringpricing model for the commodity offering; provide the commodityoffering, including at least one association based on the commodityoffering pricing values between a strike price and a premium, forselection by a customer; receive a customer selection of the at leastone association between the strike price and the premium; providepayment for some portion of a commodity purchase for an exercisedcommodity offering, based on the customer selection, wherein the strikeprice of the commodity offering is less than a local retail commodityprice; record customer behavior, including selection and exercise ofcommodity offerings, in a customer behavior database; and modify the atleast one commodity offering pricing model based on the customerbehavior database.
 62. An apparatus to provide commodity offerings,comprising: a memory; a processor disposed in communication with saidmemory, and configured to issue a plurality of processing instructionsstored in the memory, wherein the instructions are executable to: set atleast one commodity offering terms for a commodity offering; determineat least one commodity offering pricing value based on the at least onecommodity offering terms and at least one commodity offering pricingmodel for the commodity offering; provide the commodity offering,including at least one association based on the commodity offeringpricing values between a strike price and a premium, for selection by acustomer; receive a customer selection off the at least one associationbetween the strike price and the premium; provide payment for someportion of a commodity purchase for an exercised commodity offering,based on the customer selection, wherein the strike price of thecommodity offering is less than a local retail commodity price; recordcustomer behavior, including selection and exercise of commodityofferings, in a customer behavior database; and modify the at least onecommodity offering pricing model based on the customer behaviordatabase.